Sensitivity and Flexibility Important to Improve Upstream Oil and Gas Competitiveness
A panel of experts speaking at the 2nd plenary session of the 42nd Indonesian Petroleum Association Convention and Exhibition (IPA Convex) today shared a similar view that sensitivity and flexibility from the regulator are key in forging a productive partnership with PSC Contractors, thus improving the nation’s global competitiveness.
The three panelists, Vice President of Malaysia’s Petroleum Management of Petronas Muhammad Zamri Jusoh, Executive Vice President Asia Pacific Upstream of Eni Franco Polo and Regional President Asia Pacific of BP Nader Zaki shared their respective insights on the best practices in delivering upstream oil and gas projects.
In the case of Petronas, which holds the role as both operator and regulator in Malaysia, having an open ear to what is happening in the field is of key importance in establishing a successful partnership with the private sector, said Muhammad Zamri Jusoh. “The Regulator needs to be sensitive to the needs of the industry and respond in a positive manner,” he said.
Furthermore, the regulator must also be transparent in order to build trust, which will be fundamental in establishing a partnership with contractor.
Franco Polo touched on the issue of flexibility by drawing from the experience of ENI in delivering the Zohr gas project in Egypt in a speedy manner. Zohr is a massive gas field off the coast of Egypt, in which the process between discovery and production took place in just 30 months.
Franco Polo said the massive discovery from Zohr had made both ENI and the regulator approach their partnership in a different way which helped to realize the speedy execution of the project. He said that ENI and the regulator are on the same page, in a sense that both focus on the multiplier effect of the project and not only the amount of gas that can be extracted.
BP’s Nader Zaki echoed similar views, adding that both contractors and regulators need to have their objectives aligned in order to establish a successful partnership. More specifically, he said that the extra ingredient for Indonesia to improve its global competitiveness is by improving its infrastructure, which will not only open up new investment opportunities but also speed up assets monetization for investors.
Improving competitiveness is an important issue for Indonesia, with the nation having been left behind by the rest of the world in attracting the much-needed investment in the upstream oil and gas.
In terms of innovation, all of the three panelists agreed that digitalization in operations management will have a game-changing impact to the future of the upstream oil and gas industry. (convex-news)
