State revenues from oil and gas expected to decline: Purnomo

State revenues from oil, gas and mineral sector are expected to decline to Rp 217 trillion (US$=RP.9,100) in 2007 from about Rp 257.54 trillion in 2006 due to the estimated decline in oil prices in the world market, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said.

Speaking in his address at the launch of the MBA program of the Sampoerna Foundation in Jakarta on Wednesday, Purnomo said that a lower oil prices might further reduce state revenues from oil and gas and mineral sector to Rp 193.17 trillion in 2008.

Purnomo said that the assumption of oil prices used in calculating the state revenues from oil and gas in the state budget would decline from US$63 per barrel in 2007 to $58 per barrel in 2008, or slightly higher than $57 per barrel in 2006.

The minister, however, said that investment in oil, and gas and mineral sectors would continue to increase within the next two years despite the projected decline in crude oil prices.

Purnomo said that total investment in oil, gas and mineral sectors would increase to $18.2 billion in 2007 from only about $14.3 billion in 2006. ?The total investment in 2008 is expected to further increase to $20.35 billion,? he said.

Meanwhile, Oil production for 2008 is also predicted to reach 1.1 million barrels per day compared to 1.05 million barrels per day in 2007.

Natural gas production for 2008 is estimated to increase to 1.78 million barrels equivalent of oil per day (MBOEPD) from 1.59 MBOEPD in 2007.

Production of coal for 2008 was estimated to increase to 2.26 MBOEPD from 2.13 MBOEPD in 2007. (godang)