Exploration for new oil and gas sources appears slow despite the government’s strong commitment to boost production.
The Production Improvement Controlling Team (TP3M) reported on Wednesday that oil and gas contractors drilled only 58 exploration wells in the first seven months of 2011, about 33 percent of a planned total 176 wells. TP3M chairman Deni Tampubulon said that oil and gas companies in Indonesia had great difficulties in executing drilling plans, mostly due to problems obtaining permits and in land acquisition.
“The problems are classic. Besides permission and land acquisition [problems], several companies also have had problems in procuring drilling equipment,” he told reporters at a press conference at the Energy and Mineral Resources Ministry in Jakarta.