No Target Achieved in Oil, Gas Sector; Investors Lost Interest
20 July 2016 14:06 WIB
TEMPO.CO, Bandung - Oil and gas investors have lost interest because no target was achieved in the upstream oil and gas sector in the first half of 2016.
"None of seven targets of main activities in the upstream oil and gas sector was achieved," head of the public relation department of the Special Unit of Upstream Oil and Gas (SKK Migas) Taslim Z. Yunus told reporters on Wednesday.
Taslim said the main activities in upstream oil and gas sector is seismic surveys, adding only two of 11 activities planned had been implemented.
Non-seismic survey program consists of nine activities but only five were implemented, and in program of exploration drilling only 21 wells of 65 planned were drilled.
Similarly, in the program of re-entry of exploration wells none has been implemented of two activities planned, Taslim said.
In the program of development well drilling only 144 wells drilled of 245 wells planned, he added.
"Meanwhile, in the program of well maintenance, only 16,822 activities had been carried out of 39,956 activities planned," he said.
In addition, investment in the upstream oil and gas sector in the first half of 2016, was not up to expectation, he said.
In the first half of 2016, investment in the upstream oil and gas sector for exploration totaled US$367 million, for development US$845 million , for production US$3.92 billion and for administration US$521 million or a total of US$5.65 billion.
"The total investment value was less than 50 percent of the target for the whole 2016," Taslim said.
However, he said despite the decline , the prospects are still encouraging in the future that investment is expected to grow again in the sector.
Indonesia, once a member of the Organization of Petroleum Exporting Countries (OPEC), has become a major net importer of oil with production shrinking from year to year.
Last year, the country`s production of crude oil averaged 825,000 barrels per day as against consumption of more than 1.5 million barrels.
ANTARA
