Govt to include gas lifting assumption in 2013 state budget

The government will propose to the House of Representatives to include net production (lifting) assumption of natural gas in the 2013 state budget plan to ensure transparency in the state revenues from gas production, Investor Daily reported on Friday.

In 2013, the government estimates gas lifting will range between 1.29 million and 1.36 million barrels of oil equivalent per day (mboepd).

?The macro economic policy in 2013 will be different from the previous years in which state budget stated only the assumption of oil lifting and Indonesian Crude Price (ICP),? Finance Minister Agus Martowardojo said. In 2013, the government would include specifically gas lifting and their price per barrel of oil equivalent, he said.

The inclusion of the gas lifting assumption in the state budget is needed because of the large volume of the country?s gas reserves, which is estimated to reach 157.14 trillion standard cubic feet (tscf) or 3 percent of the world?s total gas reserves, Agus said.

More importantly, the inclusion of gas lifting will also ensure transparency in the state revenues from oil and gas sector, he said. ?It will give a balance of information since at present oil production is declining while the gas production is on the rise,? he added.

According to the finance minister, Indonesia?s gas production is relatively stable due to the existence of 12 major gas projects which will support the country?s gas production targets until 2016. ?With this development, the gas lifting in 2013 is projected to reach between 1.29 million and 1.36 million barrels of oil equivalent per day,? he added. (*)