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Jakarta Post

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

  • 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 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)