Jakarta, CNBC Indonesia – Indonesia’s natural resource wealth has been known since time immemorial. In the past, Indonesian spices were the most sought after, now mineral resources are sought after by various countries, including China.
Mining is a commodity that has an important role for the national economy. Since decades ago, the mining or extractive industry in Indonesia has attracted world-class companies to invest in the oil and gas sector as well as minerals.
The mining industry in Indonesia is one of the largest contributors to state revenue. One of the mining products that have great potential, including oil and gas to nickel. Here are a number of Chinese mining companies investing in Indonesia.
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1. China National Offshore Oil Corporation (CNOOC)
China National Offshore Oil Corporation, known as CNOOC, focuses on the exploration and production of oil and gas in China’s offshore waters. It has since grown into an international company with operations in more than 40 countries.
CNOOC earned more than US$108 billion in consolidated revenues, ranking 63rd in Fortune’s top global companies in 2019.
In addition to oil and gas exploration and production, CNOOC is also engaged in refining, power generation, retail marketing and engineering. Most of the company’s main operations are managed under its subsidiary, CNOOC Limited. CNOOC was listed on the NYSE, traded as CEO, and was HKG in 2001.
Citing reports from the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), CNOOC has been granted approval for the Plan of Development (PoD) for MBF Field, Madura Strait Working Area (WK) operated by Husky – CNOOC Madura Limited (HCML) ) with potential reserves of the MBF Field of 38.04 billion standard cubic feet (BSCF) to meet East Java’s gas needs.
The MBF PoD approval resulted in a commitment from operator Husky – HCML to develop the MBF Field in the Madura Strait WK with an investment of around US$ 88 million or around Rp 1.3 trillion.
2. Indonesia Morowali Industrial Park (IMIP)
IMIP is a joint venture between China’s Tsangshan Steel Holding and local company PT Bintang Eight Mineral. Citing a report from the Ministry of Energy and Mineral Resources, IMIP has built the first ferronickel smelter through PT Sulawesi Mining Investment in Bahodopi, Central Sulawesi with a capacity of 300,000 tons per year.
The second smelter was built by PT Indonesia Guang Ching to produce 600,000 tons of ferronickel per year. In 2021, PT Indonesia Morowali Industrial Park controls 50% of downstream nickel production, INCO is reduced by 22%, ANTM is only 7%, and PT Virtue Dragon Nickel Industry (VDNI) controls 11%.
IMIP operates a 2,000 hectare nickel industry equipped with a seaport, airport, and power plant with a capacity of 2 gigawatts (GW). The initial investment in the nickel industry reached US$ 1.5 billion.
As of January 2020, around 43,000 people were working in industrial estates including around 5,000 employing workers from China. Products from industrial estates produce mainly metallurgy to develop electric vehicle battery factories.
3. PetroChina
PetroChina is an oil and gas company from China which is a subsidiary of China National Petroleum Corporation (CNPC).
The company is headquartered in Dongcheng District, Beijing, is the largest oil and gas producer in Asia and the second in China in 2006. Citing a report from SKK Migas, PetroChina through PetroChina International Jabung Ltd is the operator of the Jabung Block, Jambi.
PetroChina has officially received a contract extension as the operator of the Jabung WK for 20 years for the period 2023-2043.
PetroChina has operated the Jabung WK since 2002. It should be noted that during the period 2002 – 2020, PetroChina has disbursed an investment of US$ 5.71 billion or around Rp. 81.5 trillion and more than US$ 20 million or Rp. 285 billion for empowerment programs. Public.
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