Oil, gas contractors to invest $14b in 2009

Oil and gas firms have proposed to invest US$14 billion this year, about 15 percent higher than the $13.15 billion calculated last month.

Last month?s figure was based on submitted Work Program and Budget (WP & B) proposals from the majority of 203 contract holders. More contractors have submitted their business proposals since, Achmad Luthfi BPMIGAS deputy chair for planning said Sunday, as reported by Antara news agency.

Luthfi said the higher investment levels would help the country achieve its 2009 oil production target of 960,000 barrels of oil per day (bopd) and 7.5 BCFD of gas.

The production target is lower than the country?s average last year of 978,000 bopd.

BPMIGAS external division head Amir Hamzah said there was a slight difference in how the contractors? WP & B were arranged compared to previous years.

?Previously we held separate discussions for the Authorization for Expenditure (AFE) and for the WP & B. But starting this year we will discuss both subjects simultaneously in the beginning of the year. This will make for faster approvals on proposals,? Hamzah said. (*)