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IPA Convex 2022 opens up the opportunity to address the oil and gas challenge in Indonesia

Sinta, events . 22 Sep 2022
IPA Convex 2022

Heaptalk, Jakarta — Indonesian Petroleum Association (IPA) organized the 46th IPA Convention and Exhibition on September 21—23 2022 in a hybrid concept taking place at Jakarta Convention Center (JCC) and virtual platform. IPA Convex 2022 is a collaboration of IPA with Dyandra Promosindo supported by the Ministry of Energy and Mineral Resources (ESDM) as well as the Special Task Force for Upstream Oil and Gas Business (SKK Migas).

Bringing up the theme Addressing the Dual Challenge: Meeting Indonesia’s Energy Needs While Mitigating Risks of Climate Change, IPA Convex 2022 presents panel discussions, special sessions, and technical presentations on the urgency of achieving Indonesia’s energy needs in 2030 as well as the energy transition pathways in accordance to mitigate the risks of climate change. More than 80 exhibitors participate in the three-day event, spanning multinational companies, state-owned enterprises, and many more.

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Aligning with the theme, according to the General Plan of National Energy modeling, Indonesia’s oil consumption will increase by 139%, and gas consumption will increase by almost 300%. In addition, the modeling also projected that Indonesia’s population will increase by more than 23% to almost 350 million in 30 years.

Nevertheless, at the same time, Indonesia is encountering growing global action for a lower carbon future. These figures indicate that the new and renewable energy contribution target increases. President of IPA, Irtiza Sayyed, conveyed, “Given this situation, I suppose each one of us agreed that Indonesia’s energy challenges require multi-dimensional solutions.  Accelerating Indonesia’s energy transition requires concerted efforts.”

Irtiza delivered the need to develop and explore Indonesia’s oil and gas potential within the next 10 to 20 years. The effort will accomplish two purposes simultaneously, including increasing state revenues and fulfilling the energy demand for Indonesia’s growth. Besides, the transition to a lower-emission future requires multiple solutions that can be implemented at scale to address some of the highest-emitting sectors of the economy.

One of the technologies to achieve lower emissions is carbon capture and storage (CCS) or carbon capture, utilization, and storage (CCUS) with the implementation that may go beyond the upstream industry by capturing emissions from hard-to-decarbonize sectors. “I believe the transition to sustainable energy can take many strategies, but all in the same direction. To achieve that, we must closely consult with the Indonesian government during this transition period,” said Irtiza.


Government Efforts to Support Energy Transition through IPA Convex

Minister of Energy and Mineral Resources, Arifin Tasrif, conveyed that Indonesian oil and gas upstream investment potential is still huge. “We have 70 potential unexplored basins offered for the investors. We will accelerate exploration in 5 working areas of East Indonesia, namely Buton, Timor, Seram, Aru-Arafura, and West Papua Onshore,” said Arifin.

Within the context of low carbon energy, the Minister also emphasized the role of natural gas is crucial as transitional energy before the dominance of fossil fuel shifts to renewable energy in the long run. The energy transition will be carried out in multiple stages by considering competitiveness, cost, availability, and sustainability.

Regarding the regulation on CCS/CCUS, Arifin said, “Currently, the Government is preparing Ministerial Regulation on CCS/CCUS. In the first step, our main focus is to regulate CCS/CCUS for enhanced oil recovery, enhanced gas recovery, or enhanced coal bed methane in the oil and gas working area. We are still finalizing the draft and the regulation is one of our priorities.”

The Government has set the roadmap for Indonesia’s unconventional oil and gas development by 2030 through several steps, including governance improvements and inventory potential, productivity tests, commercialization and exploitation, production optimization, and production advancement.

Arifin is optimistic that, through international collaboration, the oil and gas industry can overcome all challenges by implementing all technologies that can further help to reduce greenhouse gas emissions towards Net Zero Emissions.

IPA Convex 2022 is sponsored by PT Pertamina Hulu Energi, BP Berau Ltd., PT Energi Mega Persada, ExxonMobil Indonesia, PT Medco Energi Internasional Tbk. (Medco Energi), Mubadala Energy, Petronas Indonesia, Chevron Indonesia, Sinopec Indonesia, Harbour Energy, and Schlumberger.