ID :
31039
Wed, 11/19/2008 - 09:37
Auther :
Shortlink :
http://m.oananews.org//node/31039
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KADIN PREDICTS BLEAK PROSPECTS FOR OIL INVESTMENT IN 2009
Jakarta, Nov 18 (ANTARA) - The prospects for oil and gas investment in Indonesia in 2009 look bleak due to the global financial crisis which is expected to reach its peak next year, an Indonesian Chamber of Commerce and Industry (Kadin) executive said.
"For 2009 not much can be expected from the oil and gas sector because the global crisis is expected to reach its peak next year," Kadin vice chairman for energy and mineral resources Dito Ganinduto said here on Tuesday.
He said the financial crisis which started in the United States and had spread to other countries and was affecting oil industries at home.
But he predicted the investment climate in the oil and gas sector would improve and become conducive in 2010.
Dito who is also a member of Commission VII of the House of Representatives (DPR) which deals with energy affairs said the prediction of the bleak prospects was based on the downward trend in the prices of mining products in the world.
To make worst, he said, the demand for oil and gas product would also drop in line with the declining of the people's purchasing power.
On the other hand, the supplies will also fall because production will be lower due to restricted funding sources, particularly from the banking sector.
"The commercial benefit of the oil production activities is very low and this will possibly cause low investment in the oil and gas sector next year," he added.
He said that the fall of the world crude price to below US$55 a barrel turned out not to be followed by a decline in the production cost such as the production in in deep sea activities or in other difficult areas where production costs still reached US$60 per barrel.
Dito said in that condition investors needed facilities from the government, not adversely having their rooms to be tightened by the government.
"For 2009 not much can be expected from the oil and gas sector because the global crisis is expected to reach its peak next year," Kadin vice chairman for energy and mineral resources Dito Ganinduto said here on Tuesday.
He said the financial crisis which started in the United States and had spread to other countries and was affecting oil industries at home.
But he predicted the investment climate in the oil and gas sector would improve and become conducive in 2010.
Dito who is also a member of Commission VII of the House of Representatives (DPR) which deals with energy affairs said the prediction of the bleak prospects was based on the downward trend in the prices of mining products in the world.
To make worst, he said, the demand for oil and gas product would also drop in line with the declining of the people's purchasing power.
On the other hand, the supplies will also fall because production will be lower due to restricted funding sources, particularly from the banking sector.
"The commercial benefit of the oil production activities is very low and this will possibly cause low investment in the oil and gas sector next year," he added.
He said that the fall of the world crude price to below US$55 a barrel turned out not to be followed by a decline in the production cost such as the production in in deep sea activities or in other difficult areas where production costs still reached US$60 per barrel.
Dito said in that condition investors needed facilities from the government, not adversely having their rooms to be tightened by the government.
