Idea Transcript
41st IPA Convention Opening Speech Penulis Prismono - 18 Mei 2017
Presiden IPA, Christina Verchere saat memberikan sambutan dalam acara Pembukaan Konvensi dan Pameran IPA ke-41 tahun 2017 (Indonesian Petroleum Association Convention and Exhibition / IPA Convex), Rabu pagi (17/5). (Petrominer/ Fachry Latief)
41st IPA Convention Opening Speech, by Christina Verchere, IPA President, on behalf of the IPA Board • Your Excellency, Minister of Energy and Mineral Resources – Bapak Ignasius Jonan • Vice Minister, Ministry of Energy and Mineral Resources, Bapak Archandra Tahar • SKK Migas Chairman, Bapak Amien Sunaryadi • Director General of Oil and Gas, Bapak Wiratmaja Puja • Members of the Cabinet and DPR; • Your Excellency’s the Ambassadors; • Distinguished participants and IPA colleagues Selamat datang di IPA Convention & Exhibition ke empat pulu satu. It is an honor to be here once again at the 41st Indonesian Petroleum Association Convention and Exhibition, and to be addressing all of you today. For 46 years, the IPA has worked in partnership with the government and during that time, we have seen the oil price go up and go down and seen tremendous changes in the industry, not only on a global basis but also here in Indonesia. Throughout these times of change, the IPA and the government have remained in communication, nurtured relationships and worked together in support of Indonesia’s upstream oil and gas industry and we continue to do that today. This is the spirit in which the IPA was established in 1971. Today, I am very proud to open the 41st IPA Convention and Exhibition with the theme of “Accelerating Reform to Re-Attract Investment to Meet the Economic Growth Target” which builds on last years’ theme which addressed Shifting Paradigms in Indonesia and Supplying Energy in the New Reality. The IPA convention has the privilege of bringing together a diverse group of distinguished speakers combined with an audience from across the country and from overseas – as well as operators, service companies and also central and local government representatives and key industry figures from the energy ministry and other ministries. It is the combination of all of you that will create strong and challenging debate over the next few days. The level of participation that we are seeing at this year’s event is certainly very heartening when we look at the downturn in the global oil and gas industry, and it should be seen as a sign of optimism for the industry here in Indonesia. I would like to acknowledge the support of our member companies, the industry as a whole and the government, for their support for this convention. It is during times like this that we fully appreciate and recognize the networking and the knowledge sharing that makes this event so valuable for all of us working in the industry. This year’s event has over 1.500 convention participants from 16 countries, 133 companies are opening booths at the exhibition section and we expect over 20,000 visitors to attend. Our industry professionals and students will present 119 papers and 66 posters in the technical sessions and it is encouraging to report that we received 680 abstract papers to select from, which illustrates the depth of expertise and enthusiasm for the industry here in Indonesia. In addition to the technical sessions, we have three plenary sessions and one special session planned to discuss current issues around our business with industry players from both here and overseas and policy makers from government. We look forward to those constructive forum discussions with the clear objective of finding solutions to common problems but more importantly, to see how we can work together to ensure Indonesia’s future energy supply in a period of reducing capital investment in exploration and production. It is important to highlight where we are in 2017 – the industry is continuing to endure nearly 3 Years of low oil prices and it is highly unlikely that prices will be going back to the levels seen in 2014. One thing is clear – oil and gas companies around the world are now operating under capital investment constraints that will continue for the foreseeable future and these companies are responding to the low oil price environment by reviewing their investment plans, retrenching and determining how they can best adapt and manage change in this challenging environment. These companies are focusing on: • Enhanced efficiencies and performance through business process and supply chain improvements • Strategic and operational improvements, including cutting workforces • Reduced and refocused capital expenditure • Reducing exposure to high risk exploration prospects and • Portfolio upgrades through acquisitions and / or divestitures So how should Indonesia respond to this period of change and ensure the future energy security of the nation? At last year’s Convention, we talked about 4 key areas that needed attention – how can Indonesia compete for investment on a global scale, how to address inter sectoral reform, the importance of gas production and investment and finally, the role of the industry as a catalyst for regional development. Much has been done, but this year, some more key questions need to be asked, particularly when we view the global downturn in the industry which is now even more significant as countries around the world compete for global capital investment to find the reserves that are located in increasingly remote and more technically challenging regions. Is Indonesia competitive enough now and what will make it more competitive? What is the true value of security of energy supply to Indonesia and how can the oil and gas industry apply its multiplier effect for the benefit of all sectors and the people of Indonesia? And what are the most imperative and urgent regulatory reforms that should be made to re-attract investment back to Indonesia? It is clear that industry and government must continue to work together to address these challenges and become more competitive and efficient in order to attract global capital. Indonesia continues to be politically stable and secure with a growing economy and increasing energy needs but needs to recognize these global factors and position itself as a competitive, efficient and attractive investor option, recognizing the needs of industry as well as government requirements. I would like to reiterate again – competitiveness, efficiency and regulatory reform are key to attracting future investment. So how do we work together to make this happen? In terms of regulatory reform, the IPA appreciates recent government initiatives to improve the investment climate. There are also positive signs that government recognizes that the industry should now be viewed not just as a major revenue earner for the government but as an industry that can enable economic growth through its multiplier effect on national and regional economies. Improvements in efficiencies are also evident with the reduction in the number of permits required by operators and the industry welcomes these improvements which will reduce the time and resources required to develop new fields. We have seen that lots of new regulations have been introduced, with good intentions to align the different needs of the government and industry stakeholders, but to ensure that these changes meet the objective of attracting more investment, some other uncertainties such as fiscal terms and the tax regime also need to be addressed so that Indonesia can be more competitive on a global basis. It is clear that there are issues to be addressed, but the government is trying to face these issues and the IPA appreciates these efforts on behalf of all stakeholders. It is also clear that government want to ensure future energy security and the member companies of the IPA are committed to work in partnership to make this happen, but this cannot be achieved by discouraging the industry and hampering the investment and exploration activities that are so urgently needed. The evidence is illustrated by the fact that the number of active fields is in decline, exploration results have not been good, and lately there has been only minimal exploration activities across the country. Development drilling is also at 30 year lows and the level of licensing activity has also reached historic lows. We are committed to reversing these trends by working with government to improve competiveness and efficiency and growing the Indonesian upstream industry for the benefit of all stakeholders. The long-term sustainability of the industry in Indonesia depends on Exploration and this needs to be encouraged – whenever we talk about future energy security, we cannot avoid the issue of exploration and the need to incentivize the industry to locate the new reserves and energy resources that the country will need to support economic growth and the expanding population. Accelerating reforms is therefore a crucial element in attracting much needed investment and reducing the supply demand gap that is increasing every year. We believe that this reform should also include continuing efforts to work in synergy with various ministries, possibly under the coordination of ESDM, to enable these reforms to be introduced for the benefit of all stakeholders. To address these issues, the Plenary sessions and special sessions this year bring together leading figures from government and industry to discuss these current industry concerns: Plenary 1 this afternoon will discuss how to attract investment amidst the global capital efficiency drive and tomorrow, Plenary session 2 will look at the multiplier effect and how the industry contributes to local industry and economic growth. Plenary session 3 will examine the priority reforms that are needed to re-attract investment into this critical sector for Indonesia. The final Special Session on Friday morning will consist of a Forum discussion with experts from the IPA and other Associations working hand in hand to identify solutions to these and many other issues facing the industry. In closing, the Government and Industry must continue to work together to address the country’s needs for energy security amidst the global capital efficiency drive, without which Indonesia’s energy reserves will continue to decline and its future energy security threatened. Providing certainty, stability and a conducive regulatory environment will encourage the future exploration and development investment that is so critically needed to support the economic growth of Indonesia. The IPA and its member companies believe that the potential for the Indonesian upstream industry remains very positive with multiple basins and new exploration targets in many regions of the country. We look forward to a constructive and successful Convention in a spirit of true cooperation and partnership to find solutions and accelerate reforms to re-attract the investment that the country needs to build a sustainable industry for the benefit of all stakeholders and the people of Indonesia. Thank you once again to all attendees for being here this morning and I look forward to meeting with many of you and engaging in open and challenging discussions over the next three days.
Prismono http://petrominer.com