Energy majors flock to Indonesia

Nov. 22, 2011 at 7:28 AM
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JAKARTA, Nov. 22 (UPI) -- Major international energy companies expressed optimism about Indonesian reserves after getting access to areas off the country's coast.

Italian energy company Eni announced this week it secured production sharing contracts onshore and offshore Indonesia. Norwegian energy company Statoil followed by announcing it was awarded the operatorship and a large stake offshore Indonesia.

"Indonesia is an emerging focus area for Statoil and we have a material portfolio of frontier acreage in the country," Pal Haremo, a vice president for global ventures at Statoil, said in a statement.

British supemajor BP said it was awarded by the government two oil and gas production sharing contracts for offshore work.

"These two new blocks are strong additions to this portfolio and will benefit from BP's expertise in deepwater exploration," William Lin, BP's regional president for Asia Pacific, said in a statement.

The U.S. Energy Information Administration notes Indonesia crude oil production is in decline. Its membership to the Organization of the Petroleum Exporting Countries was suspended when it became a net importer in 2009 as mature fields decline.

The country ranks 14th in terms of proven natural gas reserves.

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