My take10 Nov 2015 13:31
VERY GOOD
A senior Pertamina official told Platts in September that the company has suffered losses to the tune of Rupiah 15 trillion ($1.1 billion) on fuel sales over January-August this year — money that could have otherwise gone towards boosting oil and gas production. Pertamina also posted a 50% drop in net profit to $570 million in the first half of 2015 due to losses suffered on fuel sales.
Along come CEB with their expertise to boost production and income and to share in a proportion of the increased income.
VERY GOOD
Jokowi also came with the promise of massive reforms to spur exploration and production work. Some measures have been taken, but the overall pace of reforms has been slow and with no sign of a new oil and gas law getting passed soon, the country is unlikely to see an uptick in investment anytime soon.
Again, along come CEB, not offering investment of cash, but investment of skills and expertise to boost to production and income from exiting wells, the owners of which are struggling because of lack of investment and reforms to support. Meanwhile as new exploration stalls, there's all the more need for CEB to ratchet up production from existing wells.
Nothing in this article will be a surprise to DW and his team who are taking advantage of the current situation.
ATB