Dry holes cost PSCs $1.6b
Thursday, May 9 2013 - 03:55 AM WIB
Upstream authority SKK Migas recorded that oil and gas firms have lost US$1.6 billion in investment in the last decade because of dry holes.
"From 2003 to 2013, explorations that have resulted in dry holes cost PSCs around US$1.6 billion," said SKK Migas Deputy Chairman J. Widjonarko on Wednesday during a discussion in Jakarta.
Widjonarko added that as such a cost reflected the high-risk nature of the upstream industry, in particular during exploration period.
He said that of a total of 309 PSCs, only 40 of which are in production stage, meaning that most of the operations are in exploration stage and risk losing a great sum of money whenever they fail to find sufficient recoverable hydrocarbon potentials.
Editing by Dadan Wijaksana