Jakarta Post

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.

Jakarta Post
The Jakarta Post
Video Weather icon 30°C
DKI Jakarta, Indonesia
30°C Partly Cloudy

Dry and mostly cloudy throughout the day.

  • Wed

    26℃ - 32℃

  • Thu

    25℃ - 32℃

  • Fri

    25℃ - 31℃

  • Sat

    26℃ - 30℃

Oil, gas upstream investment recorded at $3.7b as of May

  • News Desk
    News Desk

    The Jakarta Post

Jakarta | Fri, June 8, 2018 | 08:10 am
Oil, gas upstream investment recorded at $3.7b as of May The logo of the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas). (Antara/File)

The Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) announced that the realization of the oil and gas upstream business only reached US$3.7 billion as of May or 26 percent from the $14.2 billion targeted in the 2018 state budget.

On Wednesday, SKKMigas program and communication division head Wisnu Perbawa said the investment was relatively small in terms of exploration and exploitation.

He, however, added that it was common for investment realizations to be low in the first half of the year, but he expected significant increases in the coming months as a number of projects were now preparing rigs and locations.

“In such processes, the investment has not been recorded,” said Wisnu as reported by kontan.co.id. He, however, declined to elaborate on the projects that have not been realized.

He added that the drilling works would increase in the second half of the year. “We hope our investment target will be achieved by the end of the year.”

Meanwhile, the Energy and Mineral Resources Ministry recorded that the investment realization in the oil and gas subsector only reached $10.18 billion, last year, consisting of $9.33 billion of upstream and $844.58 million of downstream investments.

The upstream investment consisted of $9.15 billion for exploration and $180 billion for block exploration, while the downstream investment consisted of $54.97 million for manufacturing, $4.2 million for storage, $696.44 million for commerce and $1.38 million for an investment in state-owned gas distributor PT PGN. (bbn)

Join the discussions