Indonesia considering extending Chevron contract

27 October 2015

Washington (ANTARA News) – Indonesia is considering to extend the work contract of the United States-based oil and gas company Chevron after President Joko Widodos (Jokowis) meeting with its Upstream Executive James Johnson.

Minister of Energy and Mineral Resources Sudirman Said stated that Chevron, which had been operating for about 90 years, expressed interest to continue its investment commitment in Indonesia.

Said made the remarks after President Jokowi and his officials had a one-on-one meeting with Chevron executives at the Blair House in Washington on Monday.

“They have about 40 thousand employees in Indonesia. Ninety percent of the workers are Indonesians. They are committed to develop Indonesia,” Said noted.

He said Chevron had specifically prepared the Deepwater Development (IDD) project for Indonesians.

The IDD, which is a deep sea project, is important for Indonesia and is being developed by Chevron.

“This is because the oil prices are less favorable, and three PODs have been revised,” Said added.

He explained that during the meeting, President Jokowi had highlighted the importance of long-term thinking as Chevron had been operating in Indonesia since a long time.

The Indonesian government lauded Chevrons presence in Indonesia, while the company too reciprocated the gesture, emphasizing that the Indonesian government has become increasingly transparent and accessible.

In addition, Indonesia hoped that the investment of the United States in the country will diversify after President Jokowis current visit.

Head of the Investment Coordinating Board (BKPM) Franky Sibarani noted in a written press statement received in Jakarta on Monday that one of BKPMs objectives during the visit to the United States this time was to lend assurance to business circles regarding Indonesias investment potentials apart from the areas in which the country had already drawn investors from the United States.

“Ninety percent of investment from the United States in Indonesia is still focused on the mining sector. It is hoped that President Jokowis current visit will add momentum to the efforts to introduce Indonesias investment potentials to investors in the United States, especially in priority sectors such as infrastructure, agriculture, maritime, and industrial, including downstream,” he emphasized.

Sibarani pointed out that the United States investment in Indonesia continues to be focused on the mining sector.

According to BKPMs records, from 2010 to the third quarter of 2015, the United States investment in Indonesia was recorded at US$ eight billion, with the mining sector attracting the biggest share worth US$7.2 billion, followed by trade at US$258 million, food industry at US$167 million, transport industry at US$142 million, and chemical or pharmaceutical industry at US$56 million.

He said the potential to attract investment from the United States to sectors other than mining was still quite huge, taking into account that several investors from the United States had not yet invested in the sectors in which they mainly deal.

Quoting Financial Times data, across the world, investors from the United States have mainly focused on sectors, such as communication, software and information technology services, automotive, energy, and chemicals.

In view of this, Franky said the BKPM will highlight Indonesias investment potential in the digital economic sector.

http://www.antaranews.com/en/news/101171/indonesia-considering-extending-chevron-contract

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About artidj

I started working as a field engineer in Oil & Gas industry back in 1996. I do this news clipping of the industry and the geography I am interested in, mainly for my own information. I'm glad you find it useful.
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