SKK Migas approves higher 2017 capex, opex of contractors

By Godang Sitompul

SKK Migas

Upstream oil and gas authority SKK Migas said it has approved the 2017 work program and budget (WP&B) of oil and gas contractors in the country with higher capital expenditure (capex) and operational expenditure (opex) of US$13 billion, compared to this year?s $11.9 billion.

?The capex and opex reach US$13 billion for next year, compared to $11.9 billion (this year). As per November 2016, realized investment totaled $10.5 million,? said SKK Migas Public Relations Chief, Taslim Yunus on Wednesday.

He said that the higher capex and opex figure next year is mostly attributed to the plenty of drilling programs planned by Pertamina Hulu Mahakam, a subsidiary of state-owned oil and gas firm PT Pertamina, in the Mahakam Block, East Kalimantan.

There are currently 85 oil and gas contractors operating in the country, of which 67 are in production and exploitation status, while 18 contractors still in development phase.

Oil production as per early December 2016 was recorded at 833,000 bopd, and gas production at 1,180 bcf. Taslim said that oil lifting this year is estimated at 828,000 bopd. Oil lifting for next year has been set slightly lower at 825,000 bopd, while gas 1,175 boepd.

Editing by Reiner Simanjuntak