Unocal, a US oil and gas explorer with forty three percent of its reserves in Asia, has said that it will spend as much as three billion dollars developing fields in Indonesia within seven years to increase output.
Unocal will spend between two and three billion in the next five to seven years in areas such as the deep water off the coast of East Kalimantan on Borneo Island, said Andrew Buglass, Unocal's vice president for project finance in Asia.
Unocal is stepping up spending even as other companies curb investment because of concern legal changes that give Indonesia's regional authorities more power may increase taxes and bureaucratic delays.
Last year, investors spent $3.94 billion on oil and gas projects in Indonesia, 28 percent less than the government's target, according to Bisnis Indonesia.
“As with all countries, we have to do a lot of homework before we invest,” Buglass said in an interview. “There's a lot of potential and we've had a lot of success in our drilling campaigns” in Indonesia.