State Revenue From Upstream Oil And Gas Sector Reaches 9.7 Billion US Dollars

Illustration (Photo: Antara Doc)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) recorded state revenues of 9.7 billion US dollars from the upstream oil and gas industry during the January-June 2022 period.

SKK Migas also noted that the reserve replacement ratio (RRR) was at 77 percent and cost recovery was successfully maintained at a low level of 3.2 billion US dollars.

"Although production and lifting are still experiencing challenges, the upstream oil and gas industry in the first semester of 2022 has achieved several positive achievements," said Head of SKK Migas Dwi Soetjipto at the opening of the CEO Forum activity, Monday, July 11.

He added that the global situation was in a complicated condition due to the war between Russia and Ukraine, the systemic impact of which had an impact on soaring world energy and food prices, thus increasing global inflation.

"World oil prices have been around 100 US dollars per barrel for a long time and the average price until 2023 is estimated to be above 80 US dollars per barrel," added Dwi.

Likewise, global gas prices also experienced a significant increase in prices, up to above 25 US dollars per Million British Thermal Unit (MMBTU).

The LNG spot price is currently in the range of 43 US dollars per MMBTU or the equivalent of 240 US dollars per barrel of oil equivalent.

"The high price of world oil and gas is a golden opportunity for KKKS to increase production and national oil and gas lifting, which is currently still far from the target of the 2022 APBN and the Long Term Plan (LTP) for the Upstream Oil and Gas Industry," continued Dwi.

Meanwhile, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the challenges of the upstream oil and gas industry were the impact of the Covid-19 pandemic and the challenges of the energy transition era.

He added that the role of the upstream oil and gas industry in the future will develop into industrial raw materials.

"The government appreciates the contribution of the upstream oil and gas industry to state revenues," he said.