Full-year cost recovery budget to exceed target: Source

By Bernard Loebs

During January-September, upstream industry has spent US$13.48 billion in expenditure recoverable under the cost recovery scheme, according to an industrial source.

By the end of the year, cost recovery is predicted to reach $16,11 billion, higher than the $15.2 billion target set under the State Budget, the source told Petromindo.com.

The higher than expected figure is inevitable, the source added, as there are new development projects coupled with existing production facilities that require repair works.

Under the State Budget, 51.3% of total expenditure will go to support production activities. Other expenditure will be spent on, including but not limited to, the financing for field development activities (18.6%) and exploration (8%).

Editing by Dadan Wijaksana