Investment in upstream oil sector remains strong: Minister
Tuesday, August 24 2004 - 02:59 AM WIB
Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that the investment in the oil and gas upstream activities had significantly increased during the past three years, accounting at least 30 percent of the total investment in the country, Necara reported on Tuesday.
The minister said that the investment in the oil and gas upstream sector which totaled US$3.9 billion in 2000 almost doubled to US$5.3 billion in 2003. "This year, the total investment in the upstream sector is expected to further increase to US$7.5 billion," he said.
According to the minister, about US$799 million of the planned investment this year would go to exploration activities, US$2.1 billion for further development of existing facilities and another US$3.9 billion for production activities.
During the last three years, there was an increase in the oil reserves by one billion barrels, he said, adding that the average 15 percent decline in the production of the oil fields a year could be slowed down by production enhancement activities.
Gas production rose from 7.3 billion cubic feet per day (BCFD) in 2000 to 8.8 BCFD in 2003. The production is expected to further increase to 9.5 BCFD in 2004 and 10 BCFD in 2005, the minister said. (*)