BP Migas predicts increased 2004 upstream capex

Upstream oil and gas authority BP Migas predicts investment in Indonesian upstream industry will soar in 2004 to increasing activities in exploration and gas project development.

?2004 capital expenditure will far exceed this year?s figure of US$ 2 billion. The increase would be mainly derived from development of gas projects and exploration activities in the new blocks that were awarded last year and this year, ? said BP Migas deputy chairman Kardaya Warnika on a sideline symposium held by Association of Indonesian Petroleum Engineer in Bandung Friday.

Kardaya said 2004 capital expenditure could reach $ 4 billion.

A number of Indonesian gas producers had signed gas agreement worth US$14 billion in July this year with first delivery ranging from this year to 2006. Kardaya said a large portion of capital expenditure needed to develop the projects would be spent in 2004.

Government is had awarded more than a dozen new exploration blocks in 2002 and 2003, and is expected to award more late 2003 and early 2004. Kardaya said substantial amount of investment would be spent next year on the new exploration blocks. (alex/godang)