ICP sets at $40 per barrel

The House of Representatives State Budget Committee and the Ministry of Energy and Mineral Resources on Wednesday finally agreed to set the Indonesia Crude Price (ICP) assumption in the revised 2016 state budget at US$40 per barrel (not $45 as reported earlier quoting a statement from the ministry?s directorate general of oil and gas).

Director General of Oil and Gas IGN Wiratmaja Puja said the new ICP assumption is quite realistic.

He explained that the ICP is $4-5 per barrel lower than Brent. According to polls by Reuters and US DOE, global oil price over the next six months will average at $50 per barrel. ?So, we have proposed $40 per barrel as a more realistic figure (for ICP assumption),? he said.

The 2016 state budget originally assumed ICP at $50 per barrel.

Editing by Reiner Simanjuntak