Increase Upstream Oil And Gas Investment, Bahlil Wants To Simplify Licensing

Minister of Energy and Mineral Resources Bahlil Lahadalia (Photo: Doc. VOI)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia emphasized that he would accelerate licensing for Oil and Gas Cooperation Contract Contractors (KKKS) who are still in process.

This is done in order to achieve the oil and gas lifting target at the 2025 State Revenue and Expenditure Budget (APBN) of 605,000 barrels per day, which is also a priority program of President Prabowo Subianto's Government to realize energy sovereignty.

"We all know that one of the priority programs in the President's Asta Cita is energy sovereignty. Of course this is not only a slogan, but this is a noble dream of a country led by President Prabowo," said Bahlil, quoted on Thursday, July 31.

Bahlil wants oil and gas potential with all existing concessions to be used to increase lifting. As for 128 basins, only 20 basins are producing. This indicates that there are still many potentials that can be explored further. Then, there are still many Working Areas (WK) that already have a Plan of Development (POD), but do not work.

Therefore, according to the direction of President Prabowo, Bahlil will cooperate with the KKKS to seek breakthroughs in the context of increasing lifting, including finding the root of the problem in the event of a slowdown in licensing, as well as accelerating the process.

"I will go down to help all of you for the licensing process. But I beg those who have completed the permit, and or who have no more problems, please run immediately. Otherwise we will take measurable steps. It's good, of course by regulation," said Bahlil.

In addition, Bahlil also advised that there be empowerment for local communities. The guidance and opportunity for the local community is crucial so that the existence of oil and gas wealth in the regions has a positive impact.

Regarding fiscal support for realizing an economical upstream oil and gas project, Bahlil said that currently there is no problem with gross splits or cost recovery because the Internal Rate of Return (IRR) has been made economically.