Gross Split Oil, Gas Contract May Boost Upstream Sector Income

Monday, 08 January 2018 , 17:00:00 WIB -

Head of SKK Migas, Amien Sunaryadi (third right), is seen monitoring a North Processing Unit (NPU) at Mahakam Block work unit in Kutai Kartanegara, Sunday (13/12). Pertamina officially takes over the management of Mahakam Block from Total E&P Indonesie starting from January 1, 2018. (ANTARA)

JAKARTA, GRES.NEWS – The income of the national upstream oil and gas sector is considered improving. At the end of 2017, the government’s income from oil and gas reaches US$13.1 billion, increasing from last year’s income.

According to the Energy and Mineral Resources Ministry’s spokesperson Agung Pribadi, the income of upstream oil and gas sector in 2017 indicates 4 important facts. First, the government’s income from oil and gas reached US$ 13.1 billion in 2017, higher than the cost recovery in the same year that reached US$11.3 billion. "This is the first time in the last three years. In 2015 and 2016, the government’s income is always lower than the cost recovery," Agung explained, as quoted from esdm.go.id.

Second, the government’s income from oil and gas is said to be higher than last year’s income that only reached US$9.9 billion. "It means, it’s increasing by US$3.2 billion compared to the income in 2016," Agung said.

Oil and gas cost recovery is a factor that affects the government’s income from oil and gas. According to Agung, it’s also lower than last year.

"Cost recovery in 2017 reached US$11.3 billion, lower than last year that reached US$11.5 billion. I think this is the result of efficiency that’s encouraged by the Energy and Mineral Resources Minister and Deputy Minister in the last few years," Agung added.

"Oil and gas non-tax income (PNBP) in 2017 is higher than the targeted 2017 Revised State Budget (APBN-P). Oil and gas PNBP reaches Rp85.6 trillion or 112% from the target in APBN-P 2017 worth Rp76.7 trillion," Agung said firmly.

Agung said that the bid of oil and gas block with a gross split scheme in 2017 was also closed smoothly. "5 oil and gas blocks are aimed by 7 contractors. From the five blocks, one oil and gas block is aimed by 3 contractors, which is Andaman II. The government’s effort to encourage efficiency through oil and gas gross split contract is starting to show results," Agung said firmly. (rm)

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