JAKARTA: The government requested to be more transparent and faster in deciding a contract extension before the oil and gas contract expires. President of Indonesian Petroleum Association (IPA) Jim W. Taylor said that with the increasing number of oil and gas contracts that are approaching their end dates, contract renewal process should be clear and transparent.
It was to give the extended time frame required by the oil and gas contractors to plan and develop major new discoveries, especially for gas related projects. "The extension of the contract must be transparent and fast. If it is not clear, investors will lose money, oil and gas production will fall further," Jim said in a press conference today. Besides the issue of the contract extension, the IPA also highlighted another important thing for the future of oil and gas production in Indonesia, namely the importance of encouraging exploration investment. "Exploration activities should be encouraged, incentivizes and accelerated. Exploration investment is the key to future production," said Jim. Jim also added that especially when the future of Indonesia’s oil and gas exploration will be moved to eastern Indonesia and in the deep offshore that require huge cost, high-technologies and long process. (tw)