The Benefit of Oil and Gas Activities in Bintuni Gulf for West Papua Economic

Papua has abundant natural resources in the oil and gas sector. The location that has the potential for this type of energy is Bintuni Bay, West Papua Province. This activity attracts investors to meet the needs of the Petrochemical sector. Based on the data obtained, this activity significantly impacts the community’s economy. Here is the detailed information!

Potential Oil and Gas Activities in Bintuni Gulf

The existence of oil and gas potential around Bintuni Bay provides an opportunity to become the center of economic growth in Papua in oil and gas activities. The creation of environmentally friendly oil and gas reserves offers many benefits for the local community around the oil and gas area. As a result, this will positively impact the local and national economies.

Currently, oil and gas production and development activities in the Papua region are mainly the Tangguh Block. Several fields that will be the next focus in preparation for production are the Kasuri Block. With this new focus, it provides economic and environmental stability to Bintuni Bay. Tangguh Train 3 is available for the next project, from exploration to development.

Even though time, energy, and money are available, one must still strive to develop oil, and gas is a motivator. Also, it accelerates development plans to replace economic sources other than oil and gas for the economy of Bintuni Bay in West Papua. Therefore, oil and gas activities must be supervised by policies, performance, and development.

All of these efforts will positively impact various aspects of the economy if the activities run smoothly and well. In the next step, the government or KKKS can minimize the occurrence of excessive spending in maximizing existing resources. As a result, this will also benefit the economic and environmental sectors for oil and gas development activities that are being carried out.

Development of Oil and Gas Investment in Bintuni Bay

As a study material for the Tangguh LNG Train 3 Project in Teluk Bintuni Regency, Papua is the best development location. The Tangguh Train 3 refinery has a unique design with a capacity of 3.8 MMTPA. This project operates the Tangguh LNG plant gas source from several Berau Block, Wiriagar Block, and Muturi Block.

The latest Bintuni Bay Oil and Gas Investment, Tangguh LNG Train 3, will absorb around 10,000 workers. As much as 85% comes from local workers, and some other construction work comes from outside. The Tangguh LNG plant development project will add two Power Plant, fertilizers, and Petrochemical platforms, complete with supporting infrastructure in West Papua.

The infrastructure includes roads, bridges, ports, gas pipelines, and more. At the same time, this oil and gas project impacts the economy of Bintuni Bay and the national economy. Linkages between regions or regions are also essential to produce equitable development. As a result, this provides consequences on the economic structure of Bintuni Bay.

Industrial Development Plan in Bintuni Bay

Petrochemicals and Fertilizers are the following development plans in Bintuni Bay. The Bintuni area is identified as 23.8 TSCF to develop the natural gas industry in Papua. In addition, new reserves of 6-8 TSCF were also found, which have the potential to be used as raw materials for the ammonia industry or the urea industry. In addition, it is also useful as a raw material for the methanol industry for petrochemicals.

Economic Impact on Bintuni Bay

There are three economic impacts of the Papua Province studied: gross income, community income, and employment. Gross Regional Domestic Income (GRDP) per capita has increased significantly in development in Papua. The percentage increase in gross income in West Papua against Business As Usual (BAU) will reach 42 percent in 2022.

It also resulted in an increase in community income by 30 percent in the same year, where there was total production on Tangguh Train-3. Meanwhile, employment in Papua has increased by 107 percent than the percentage before. In detail, the three indicators are expected to reach their peak in 2026 significantly.

Besides having a significant impact on the economy, oil and gas activities in the Bintuni gulf lead to the environment. Regional development requires an initial study of the carrying capacity of the situation. It is essential to support a balanced population without being destroyed. Efforts to maintain a balance also affect Work Safety and Environmental Protection.

As oil and gas production increases in Bintuni Bay, it is necessary to implement controls on environmental impacts. It consists of several aspects such as human activities, transportation, etc., due to upstream and downstream oil and gas activities in the Bintuni Bay area, West Papua. By utilizing science and technology, environmental stability will be created.

Overall, the analysis of the economic impact, which is monitored from the community’s income, and the absorption of labor in Papua has been increasing continuously. It shows that the decline in gas production is a factor that affects the economic pattern of Bintuni Bay. Therefore, the government and the parties involved must maintain the gas resource as well.