SKK Migas proposes higher budget for cost recovery

Upstream oil and gas authority SKK Migas has proposed a US$11.77 billion budget for oil and gas cost recovery next year, which is 47 percent increase compared to the $8 billion allocation for this year, Bisnis Indonesia reported on Tuesday.

The paper quoted SKK Migas Chief Amien Sunaryadi as saying that the proposed new budget for cost recovery will be included in the 2017 State Budget. He said that proposed cost recovery budget has yet to be deliberated by the House of Representatives Commission VII on energy and mining, and the Ministry of Energy and Mineral Resources.

?We propose $11.77 billion, but it has yet to be discussed at the House Commission VII,? he said.

Amien also said that the oil and gas cost recovery this year is anticipated to exceed the $8 billion budget, as in the January-August period, the realized cost recovery has already reached $6.5 billion.

The House of Representatives State Budget Committee on Monday approved the House Commission VII decision to set oil lifting target of 815,000 bpd for next year, higher than the 780,000 bpd proposed by the government in the 2017 State Budget Draft. Meanwhile, gas lifting is set at 1.15 million mmscfd for next year, the same as the government?s proposal. (*)