Indonesia Seeks Japanese Investors for Gas Fields

The Indonesian government has invited Japanese investors to develop small natural gas fields in the eastern part of the Southeast Asian nation.

The Japan Bank for International Cooperation would provide financing for investors, who will make an investment on the small gas fields, according to Raden Priyono, chairman of upstream oil and gas regulator BPMigas.

“We have confidence that JBIC, with its long investment experience in Indonesia, will be able to play an important role in convincing Japanese big investors to develop the Indonesian up-stream oil and gas industry’s huge potential in the form of financing,” Priyono said.

Priyono noted that Mitsui and Sumitomo, would handle the pilot project. The cost of the projects will be revealed after the completion of feasibility studies.

Under the agreement, the gas produced from the fields will not be for overseas sale, Priyono said. “This is a new model where the foreign companies produce gas purely for domestic needs,” he added.

Source: Jakarta Globe