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Upstream investment in Q1 only 14 percent of 2017 target
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Workers tighten a drilling machine at an oil and gas block in Indonesia. (Kompas.com/File)
I
nvestment in the upstream oil and gas sector amounted to only 14 percent of the full-year target during the first three months of 2017.
Data from the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) show that investment in the upstream sector reached US$1.9 billion by the end of the first quarter.
The government has set a target of $13.8 billion by the end of this year.
SKKMigas secretary Budi Agustyono said the volume of investment was probably related to the current global oil prices, which remain at around $52 to $55 per barrel.
"Of course this is related to oil prices. We cannot force more investment because we want to maintain quality control," he said during a press conference in Cilegon, Banten, on Friday.
(Read also: Firm tipped to deal with red tape in oil, gas sector)
Investment in the upstream oil and gas sector has continued to decline in Indonesia, partially because of low oil prices and also stifling red tape in the country. Last year, total investment in the upstream sector amounted to $12.01 billion, dropping from $15.9 billion in 2015. (bbn)
