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.

Jakarta Post

Realization of oil, gas investment far away from target

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, October 27, 2017   /   05:48 pm
Realization of oil, gas investment far away from target Workers tighten a drilling machine at an oil and gas block in Indonesia. (Kompas.com/File)

Head of the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) Amien Sunaryadi said that the shortfall in the realization of the oil and gas investment was caused by financial problems faced by the oil and gas contractors.

He said the government had adjusted the oil and gas exploration mechanism to the current low prices of oil and gas.

Meanwhile, the low realization of investment in the exploitation was caused by problems in the tender bid.

Read also: Exploration targets out of reach

One problem, he said, was that the procurement of ships for the MBH Madura field needed to be postponed to next year because the tender bid had to be repeated.

“Because of the postponement, the realization of the investment cannot be realized in 2017,” Amien said in Jakarta on Friday, as reported by kontan.co.id.

The realization of oil and gas downstream business was recorded at $835.52 billion, while the target was $2.42 billion. Upstream business, according to the Energy and Mineral Resources Ministry, reached $5.57 billion, shy of the $12.85 billion target in 2017. (bbn)