Govt pays US$7 billion in cost recovery

As of mid of July, the government has transferred about US$7.1 billion in cost recovery to oil and gas companies, or about 57 percent of the $12.3 billion budgeted for this year, the upstream oil and gas regulator, BPMIGAS said.

Spokesman of upstream oil and gas regulator BPMIGAS, Gde Pradnyana said that about 60-70 percent of the cost recovery was in the form of capital expenditure, with the remainder in the form of operation expenditure.

He said that traditionally, the operational expenditure would be much higher in the second half of this year.

Regarding oil and gas lifting, as of July 20, the average gas lifting was recorded at 7,400 bbtud, compared to this year?s target of 7,760 bbtud. The average oil production was 904,000 bpd, compared to the 945,000 bpd target set in the revised 2011 state budget. (*)