TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Oil-gas contracts drop 6% on lower oil price
Lower investment: A technician carries out work at a piping facility of an oil and gas company
Change Size
Lower investment: A technician carries out work at a piping facility of an oil and gas company. The Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) said that the decreasing price of oil in 2015 led to a 20 percent drop in oil-gas exploration and production investment. (Antara/Yudhi Mahatma) (SKKMigas) said that the decreasing price of oil in 2015 led to a 20 percent drop in oil-gas exploration and production investment. (Antara/Yudhi Mahatma)
L
span class="inline inline-center">Lower investment: A technician carries out work at a piping facility of an oil and gas company. The Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) said that the decreasing price of oil in 2015 led to a 20 percent drop in oil-gas exploration and production investment. (Antara/Yudhi Mahatma)
The falling price of oil has urged oil and gas companies to improve production efficiency. The upstream oil and gas industry recorded a 6 percent contract value drop after contract renegotiations last year, said the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas).
Previously, the value of contracts in the industry stood at US$5.78 billion, comprising mostly drilling and shipment contracts.
After contract renegotiations in the middle of last year, the value of contracts decreased US$380 million to $5.4 billion.
"Companies are cutting capital spending. Thus, investment in exploration activities decreased 20.3 percent," SKKMigas head Amien Sunaryadi said in Jakarta on Tuesday.
Amien predicted that uncertainties would continue to taint the price of oil. With the current price of oil standing at around $54 per barrel, he expected the price to rebalance to around $60 to 75, in mid-2016.
The price of oil in the market was $ 51.21 per barrel, 14.6 percent below the target in the state budget, while the price of gas was $7.24 million standard cubic feet per day (MMSCFD), 15.4 percent above the target.
Oil and gas production in 2015 has met 96.5 percent of the target in the state budget. Oil production was targeted at 825 million barrel oil per day (MBOPD), but the realization was 777.56 MBOPD, 94.2 percent of the target.
Meanwhile, gas production in 2015 stood at 6,933.3 MMSCFD or 97.9 percent of the target which stood at 7,079 MMSCFD.
In total, oil and gas production amounted to 1,972.95 million barrel oil equivalent per day (MBOED), 96.5 percent of the target. (ags)
