Indonesia?s Oil and Gas Investment to Reach US$25 Billion

Indonesia’s Upstream Oil and Gas Regulatory Body (SKK-Migas) has said that upstream oil and gas investment in 2014 is targeted to reach US$25.64 billion. This includes US$3.84 billion for exploration activities, US$ 1.6billion for administrative matters, US$5.3 billion for development and US$14.9 billion for production.

Plans include 9,020 kilometers of 2D seismic surveys, 3D seismic survey of 11,633 square kilometers of 3D seismic surveys, drilling of 205 exploration wells, drilling of 1,364 development wells, work-over of 932 wells and well services of 33,060 wells.

“It increased 32 per cent compared to the realization of investment in 2013 of $19.342 billion,” said acting chairman of SKK Migas, J. Widjonarko in Jakarta on Wednesday.

“SKK Migas encouraged increase in investment, particularly in exploration activities for the discovery of new reserves,” Widjonarko said.

The State Budget of 2014 has targeted oil lifting of 870,000 barrels per day and gas lifting of 7,175 million British thermal unit per day (bBtud). This number is equal to 2,110,000 barrels of oil equivalent per day. The state revenue target from oil and gas sale is US$30.6 billion.