Acknowledgements | Conference Program | Exhibition | Photo Gallery
Kuswo Wahyono |
Ego Syahrial |
Closing Remarks
His Excellency, the Minister of Energy and Mineral Resources
Members of Parliament,Prominent CEOs, Distinguished Guests, Ladies and Gentlemen,
Good afternoon
We have all gathered here with a common goal - to explore how we can capture the opportunities presented by Indonesia's large potential CBM resources and accelerate its development.
It is our intention that based on the input and information from the presentations and discussions at this conference, concrete recommendations can be drafted and proposed to the GOI's Joint CBM Task Force.
As we have heard from the Minister of Energy and Mineral Resources, the GOI is prioritizing CBM development, in order to augment our gas production to complement domestic gas supply, and support Indonesia's long term energy strategy.
We are encouraged to hear the Government's firm commitment and that the Minister is strongly promoting a consultative process between the government and industry stakeholders in developing a CBM regime, which is economically attractive to investors .
It is also encouraging that the Government is currently addressing the issues of CBM acreage and rights and contracting processes in the revision of the Ministerial regulation No 33/2006. Unfortunately, due to time constraint, the revised regulation cannot be finalized today as it must undergo due process for inter-departmental consultation and approvals.
Indeed, increasing CBM recoveries internationally show that new technologies can enable profitable commercialization of CBM where the regulatory and market environments are conducive.
Learning from the success stories in Australia, Canada and the USA, it is clear that favorable Government promotion of CBM through a clear and comprehensive regulatory framework and clear licensing and approval processes are imperative.
Additionally, with the technical challenges and economical model for CBM different from that of conventional Natural Gas production, investor incentives must recognize significant risks taken by developers.
In conclusion, it is clear that we must act promptly and concertedly to move the industry forward. We must learn quickly from the experience of successful projects and adopt new technologies and appropriate CBM regulations consistent with best international practices.
The following actions must now be taken:
• Comprehensive implementing regulations must be quickly put into place to appropriately address issues as licensing process, technical standards, procurement, land management, local ethnic, historical and cultural rights, and environmental protection such as water treatment and management
• Tender procedures and regulatory approvals' processes must be streamlined and modified to become more “fit for purpose” for CBM development
• The fiscal regime and incentive programs must be improved to encourage technology providers and investors to fast track CBM development
• CBM resources must be appropriately matched to domestic and export markets through low cost business models that can balance CBM's different risk and reward profile, allow multiple developments to spread risk and limit the payback period.
• Strategies to improve affordability of gas by domestic users and incentives to promote development of necessary infrastructure must be developed
• Collaboration with technology providers to adopt new CBM technologies, which can deliver increased efficiency and commercial viability of CBM exploration and exploitation
• Learn and adopt CBM development and commercial strategies consistent with world's best practices and experience from projects in San Juan, Horseshoe Canyon and Queensland.
• Step up Human Resources development within the government institutions and the industry to increase knowledge on the geo-technical, operations, commercial and financial aspects of the CBM project life cycle and likely industry development scenarios.
Ladies and gentlemen,
The GOI has stated its commitment to follow up quickly to ensure that a comprehensive regulatory framework conducive to investments, is put in place.
Thus I urge all stakeholders - investors, technology providers and associations, to proactively galvanize our efforts and collaborate on the exchange of information, sharing of data and technical expertise towards this goal.
May I extend our sincere gratitude and appreciation to H.E Dr. Purnomo Yusgiantoro, Minister of Energy and Mineral Resources of the Republic of Indonesia for his firm commitment to developing a CBM regime that is favourable for Indonesia and the industry.
The revised I would like to express my sincere appreciation to you - the Delegates, the Speakers, the Exhibitors and the Sponsors in contributing to the success of this conference.
We have now come to the close of INDOCBM 2008. I hope that you have benefited from attending the conference and meeting both present and future business partners. I wish you every success and look forward to meeting you here again at INDOCBM 2010.
Thank you