Oil, Gas Cost Recovery Targeted at Rp192tn
22 September 2014 17:06 WIB
TEMPO.CO, Jakarta - The House of Representatives’ Budgetary Board budget assumption working committee has agreed that operating costs from oil and gas mining exploration and exploitation or cost recovery will be targeted at US$16 billion or around Rp192 trillion.
The fund included in the 2015 budget draft is lower than the allocation read by the president in the Financial Note which is US$16.5 billion.
In a meeting that discusses energy assumption, the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) proposed cost recovery up to US$17.8 billion. The increase in cost recovery was proposed after oil lifting target increased to 900,000 barrels a day and gas 1,248 million barrels a day.
SKK Migas acting chief Johannes Widjanarko said the lifting target is impossible to be achieved from the existing exploration and exploitation activities. “There must be new activities,” he said on Monday.
Johannes added that new activities in oil and gas sector should be accelerated from 2016’s first quarter to 2015’s fourth quarter. As a result, cost recovery is imposed earlier in 2015.
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