Indonesia Vows to Work with Private Cos to Restore Oil Glory

Vowing to reverse Indonesia’s gradual decline as an oil exporter, Indonesian petroleum officials Wednesday promised to work with private oil giants to encourage new investment in East Asia’s lone member of the Organization of Petroleum Exporting Countries.

“If you have any kind of suggestion, come to my office,” Luluk Sumiarso, director general of oil and gas for the Indonesian energy ministry, told a petroleum industry gathering in Houston Wednesday. “We are listening for input from investors for improving our contract terms.”

In October 2007, Indonesia offered up 26 oil and gas leases. Luluk Wednesday said Indonesia planned to solicit bids for an additional 18 blocks at an Indonesian petroleum industry gathering later this month. Luluk also promised to provide better fiscal terms to prod more investment. He spoke at a breakfast attended by about 180 people at the Offshore Technology Conference.

Capitalizing on soaring oil prices, Venezuela, Russia and other leading oil-producing countries have pressured the private oil giants to revise contract terms to benefit resource-holding nations. Luluk’s comments Wednesday signaled a more benign government reception from Indonesia as it struggles to restore its oil production.

Rigzone