Oil, gas sector contributes lower revenue than projected

By Febry Silaban

Upstream authority SKK Migas said that the country?s oil and gas upstream sector contributed lower revenue to the state this year than projected.

SKK Migas spokesperson Elan Biantoro said that the government?s take from the sector this year only reached US$12.45 billion, lower thn the $14.99 billion target set in the 2015 state budget, and the $13.81 billion target set in the 2015 work program and budget (WP&B) of oil and gas contractors.

Speaking at a year-end media gathering in Cirebon, West Java, on Sunday, Elan said that the the lower revenue conttribution was primarily attributed to the lingering drop in oil and gas prices.

Elan said that gas price this year averaged $6.88 per mmbtu, or 97.4 percent of the WP&B target of $7.07 per mmbtu.

"Last year, we were still able to export gas (LNG) at a price of $15-17 per mmbtu. At the moment we can only sell gas (LNG) at a price of $6.88 to 7.9 per mmbtu," said Elan.

Elan said earlier to this portal that the 2016 state budget targets the government's take from the upstream sector at $11.65 billion and cost recovery at $11.09 billion. The 2016 WP&B, however, sets a lower target for the government's take at $10.77 billion, and much higher target for cost recovery at $14.92 billion. Elan added that the Indonesian Crude Price (ICP) is projected at $50 per barrel next year.

Editing by Reiner Simanjuntak