press release Chevron Appreciates Indonesia’s Efforts to Improve Oil and Gas Investment

Jakarta, Indonesia, May 2018 - Chevron appreciates SKK Migas and the Ministry of Energy and Mineral Resources (ESDM)’s efforts to improve the competitiveness of oil and gas investment in the country.

Through ESDM, Indonesia continues to demonstrate a strong commitment to work collaboratively with oil and gas investors for the benefit of the nation in areas such as, simplifying regulations and defining potentially more attractive fiscal terms.

"With a more competitive environment and remaining petroleum resource potential, Indonesia has the opportunity to increase investment, employment and higher absolute government revenue," said Managing Director Chevron IndoAsia Business Unit Chuck Taylor at the Plenary Session 1 of the 42nd Indonesia Petroleum Association (IPA) Convention and Exhibition in Jakarta on Wednesday, May 2, 2018.

Amid low commodity prices in the last few years, oil and gas investors have been challenged to find smarter ways to lower costs and have been more selective in making investment decisions. At the same time, countries around the globe are competing for capital and making efforts to improve their investment climates.

At the plenary session, Taylor shared how business players view the current state of Indonesia’s competitiveness and how government and industry can work together to enhance Indonesia’s competitiveness. Investors need fiscal certainty and fiscal competitiveness. Some keys to attracting investment in Indonesia are revenue sharing which creates competitive returns for investors, sanctity of contract commitments, regulations founded on sound data and global best practices, timely government approvals, simplified permitting processes, alignment among ministries and alignment among central and regional governments.

In Indonesia, investors are looking for contractual agreements which enable world-class operational performance, material financial value and competitive returns.

"We have seen positive changes through the recent amendment of the Minister ESDM regulation on Gross Split. It’s clear that ESDM have accepted industry feedback and strengthened the terms in to increase the competitiveness of the model. With the Minister now able to provide additional discretionary contractor split, the opportunity for competitive returns for investors now exists. I am hopeful that Minister Jonan will use this discretionary to allow the full potential of investment to be realized," added Taylor.

Chevron is one of the world's leading integrated energy companies and through its Indonesian subsidiaries, has been present in Indonesia for 94 years. With the ingenuity and commitment of highly skilled and dedicated employees, Chevron Indonesia leads as one of Indonesia's largest producers of crude oil. From our onshore oil fields in Riau, Sumatra and our offshore fields in East Kalimantan, we have produced more than 13 billion barrels of oil to meet the energy needs of Indonesia's growing economy.

In operating the oil and gas blocks in Indonesia, Chevron is working under supervision of SKK Migas based on Production Sharing Contract terms. For further information about Chevron in Indonesia, please visit www.indonesia.chevron.com.

 

Contact:
Danya Dewanti
Email:danya.dewanti@chevron.com
Phone:+62811894229

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