Cost recovery finally set at US$16.5 billion
Thursday, February 12 2015 - 03:53 AM WIB
The House of Representatives Commission VII on energy and mining finally approved a proposal from the Ministry of Energy and Mineral Resources to set oil and gas cost recovery of US$16.5 billion in the revised 2015 state budget.
The approval was given during a meeting between the commission, the ministry and the upstream oil and gas authority SKK Migas on Wednesday deliberating the economic assumptions of the revised state budget, which targeted an oil lifting of 825,000 bpd (lower than the 900,000 bpd in the original budget).
The House budget committee previously proposed cost recovery to be set at $14 billion. But the lawmakers and the government finally agreed on a higher cost recovery among others to help ensure the oil lifting target can be achieved.
Editing by Reiner Simanjuntak