Oil and gas revenue predicted to decline in 2015

JAKARTA. The Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) has said that state revenue from oil and gas exploration activities is predicted to reduce by between Rp 112 trillion (US$9.02 billion) to Rp 193 trillion from last year’s revenue due to falling global oil prices.

SKKMigas spokesperson Rudianto Rimbono said in Jakarta on Wednesday that in 2014, the amount of state revenue from the oil and gas sector was equal to Rp 354 trillion.

“In 2015, however, the state oil and gas revenue is predicted to reach only between Rp 161 trillion to Rp 243 trillion,” he said in Jakarta on Wednesday.

Rudianto said the lower revenue figure in 2015 was due to declines in oil-price assumptions.

In 2015, the oil-price assumption to be used is within a range of $65-85 per barrel. Meanwhile, the realized oil price in 2014 is recorded to have reached $100.48 per barrel.

Rudianto said other revenue assumptions in 2015 were oil lifting of between 840,000-850,000 barrels per day and gas lifting of 1.17 million-1.18 million barrels per day. “Another assumption is operation and development costs of between $18.6 billion-$19.5 billion,” he said.

In 2014, oil lifting is recorded to have reached 794,000 barrels per day and gas 1.22 million barrels per day.

In total, Indonesia’s oil and gas revenue in 2015 is predicted to reach $52.7 billion, comprising $28.9 billion from oil and $23.8 billion from gas. Of the total revenue, $17.02 billion will be distributed to the state, $8.68 billion for cost recovery and $3.18 billion for contractors.

Meanwhile, the state revenue from gas will reach $11.32 billion, followed by $7.23 billion for cost recovery and $5.26 for contractors.

Therefore, the total state revenue from oil and gas in 2015 will reach $28.33 billion while contractors will get $8.43 billion and $15.91 billion will go to cost recovery. (ebf)