Oil and Gas Exploration in East Aceh (Indonesia)

PT Medco E & P Malaka who gets control of Block A license extension in East Aceh has finally announced the launching of the commencement of exploration activities of OIL and gas  at the end of this year.

In addition, the commencement of operation of OIL and gas exploration in Block A is also highly expected by PT Pupuk Iskandar Muda (PIM). Fertilizer company based in the city of Lhokseumawe it has signed a contract with PT Medco E & P Malaka to supply 110 million cubic feet of gas per day (mmscfd) for approximately five years. Because of all this, PT PIM should bring gas supplies from outside Aceh transported by cargo ship.

Medco's commitment was conveyed President Director / CEO of PT Medco E & P Malaka, Budi Basuki in the greeting ceremony launching the start of projects of OIL and gas field Block A and the implementation of community development programs

Budi added that the investment area of Block A in East Aceh require funds worth $ 600 million. While the need for opening of an oil well requires USD 10 million or equivalent to Rp 180 billion. also will open a new OIL wells into reserves for the future.

East Aceh Regent, Muslim Hasballah said, the oil and gas mining concessions covering 15 districts of 24 districts in East Aceh. Of the 15 districts, most of the region oil and gas sub-sectors within the concession area of PT Medco E & P Malaka or so-called Block A. While PT Pacific OIL & Gas in District Rantau Peureulak and PT Triangle Pase Inc. located in District Pante Bidari.

Mover Oil Prices

Mover Oil prices have equality as factors driving the gold price, it is important for us to consider these factors in order to assist in identifying opportunities in managing transaction activity.

Some fundamental factors that are essential for oil we observe. So as to move the crude oil prices dramatically:

1. Offers and supplies

Level of supply or supply of oil in the world is the most fundamental factor. The decline in oil prices caused by the swelling of very sharp crude oil stocks. When the oil producing countries start reducing their production, oil demand would continue to rise.

Political tensions that occur in regions or countries, especially the oil producing Middle East region, based on historical records, has affected the price of crude oil in the world market. Any interference that could affect oil supplies either real or just a rumor can affect prices dramatically.

Relations Oil, Dollar, Gold and Forex

Developments in oil prices after the outbreak of war in Libya is very influential on commodity prices and the index that is currently providing a significant impact on the development of currency in Forex trading. Call it a few commodities such as oil, gold and natural gas create strong influence on the rise and fall of the USD and other currencies. So also with the movement of stock in America pegaruh affiliated with the Dow Jones Index. If the movement in general shares a country has decreased the value of the currency country will be corrected down.

Asia Oil Prices

The fall in world oil prices in Asia on Wednesday April 27 2011 because investors are waiting for a decision after a two-day policy meeting of the U.S. central bank. weakening greenback makes dollar-priced oil cheaper, increase demand and lead to higher oil prices.

In the oil market in New York, for futures contracts, light sweet crude for June fell 19 cents to $ 112.02 per barrel, while Brent North Sea crude for June delivery fell 22 cents to $ 123.92. The oil market has been pretty flat, no one really have a whole lot of movement

The oil market will see what will come out of the meeting of the Federal Reserve Bank and with regard to comments from Fed Chairman Ben Bernanke whether monetary tightening will begin. This meeting will be important in maintaining the tone of the weakening U.S. dollar for the rest of the second quarter.

Oil Processing

Oil is one of the basic human needs, even in nearly all parts of the world's petroleum is used as an energy source or for the needs of daily life - days. So far people only know the oil in the form so without knowing the origin of oil from where and how to get through so can be directly used. Generally obtained by drilling wells on land and on the beach, to a depth of hundreds of meters even until kilogram meters above sea level. the first oil found still in their raw form. 

The oil obtained is collected in tankers and then flowed through pipes into the tank station or oil refinery. Crude oil is a black viscous liquid and smelled dreadful. This oil can not be used as fuel or for other purposes, but must go through processing in advance. 

Indonesia Targets Oil Production Away from Hope

Finance Minister Agustin Mastowardojo says production (lifting) of oil this year probably can only reach 950 barrels per day, slip away from targets that have been installed in Budget 2011 at 970 barrels per day.

This condition makes the Ministry of Finance must be vigilant, especially until the first quarter of this year, oil production reached only 895 barrels per day. Of course, the Ministry of Energy and Mineral Resources and BP Migas will seek a maximum for 970 barrels per day target could be achieved.

Indonesia's policy towards the Increase In World Oil

The Indonesian government has not yet determined attitude to the price of fuel oil (BBM) a few weeks since the world crude oil prices rose through U.S. $ 100 per barel. Until Thursday (21 / 4), Coordinating Minister Hatta Rajasa still ensure that fuel prices will not be raised and the implementation of quota restrictions also not yet implemented. Four options previously presented to the government also has not been decided. Since early February 2011, the price of crude oil has crossed U.S. $ 100 a barrel, the highest rate since the economic crisis of 2008.

A number of parties, including former Vice President Jusuf Kalla and House members Satya W. Yudha, assess, it is time the government raised subsidized fuel prices to reduce swelling in the state budget subsidy fund. However, until mid-April 2011, Hatta ensure the government has not taken any steps to that. There was no thought at all (raising prices).