Oil & Gas Investment and the Gross Split Scheme

Kompas/Handining

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For the last 17 years, Indonesia\'s oil reserves and production have been declining consistently. Production in 2000 totaled about 1.5 million barrels per day (bpd), and has now dropped to only 800,000 bpd.This decline is mostly due to natural depletion of the country’s oil fields, while new fields have not been able to supplant the decline in production.

Natural gas production, though relatively better, has also shown a declining trend in recent years. The lack of new reserves is caused by an unfavorable investment climate that has resulted in declining interest, especially in the exploration of new reserves.