Total gets sour with Indonesia investment
Shortly after oil giant Chevron has said it might reduce investments in Indonesia due to unfavourable investment conditions, French oil company Total has expressed its dissatisfaction that Indonesia’s rules for overseas investors are hampering operations.
Indonesia’s central bank brought in rules in 2011 to force exporters to channel earnings through local banks, but the issue has become more sensitive in recent months because of the fall in value of the rupiah and could threaten future investment by the two companies, Reuters reported.
Indonesia is desperately trying to boost energy production and encourage investors to put more money into exploration. But it has been widely criticised for confusing and sometimes contradictory regulations that some have warned could end up scaring off foreign investment, the agency said.
Total operates the Mahakam block, but Indonesia’s state oil and gas company Pertamina has expressed an interest in the gas field. While Total Indonesia’s CEO Elizabeth Proust told reporters that Total’s investment plans for 2013 remain intact, she said that uncertainties over the company’s Mahakam contract extension could interfere with its business in future.
Shortly after oil giant Chevron has said it might reduce investments in Indonesia due to unfavourable investment conditions, French oil company Total has expressed its dissatisfaction that Indonesia's rules for overseas investors are hampering operations. Indonesia's central bank brought in rules in 2011 to force exporters to channel earnings through local banks, but the issue has become more sensitive in recent months because of the fall in value of the rupiah and could threaten future investment by the two companies, Reuters reported. Indonesia is desperately trying to boost energy production and encourage investors to put more money into exploration. But...
Shortly after oil giant Chevron has said it might reduce investments in Indonesia due to unfavourable investment conditions, French oil company Total has expressed its dissatisfaction that Indonesia’s rules for overseas investors are hampering operations.
Indonesia’s central bank brought in rules in 2011 to force exporters to channel earnings through local banks, but the issue has become more sensitive in recent months because of the fall in value of the rupiah and could threaten future investment by the two companies, Reuters reported.
Indonesia is desperately trying to boost energy production and encourage investors to put more money into exploration. But it has been widely criticised for confusing and sometimes contradictory regulations that some have warned could end up scaring off foreign investment, the agency said.
Total operates the Mahakam block, but Indonesia’s state oil and gas company Pertamina has expressed an interest in the gas field. While Total Indonesia’s CEO Elizabeth Proust told reporters that Total’s investment plans for 2013 remain intact, she said that uncertainties over the company’s Mahakam contract extension could interfere with its business in future.
