First Semester Oil And Gas Investment Realization Dropped

Illustration (Photo: jpenrose from Pixabay)

JAKARTA - Realization of investment in the oil and gas sector (Migas) in the first half of this year dropped. Where investment in the oil and gas sector has only reached 5.6 billion US dollars (US) or the equivalent of Rp. 81.65 trillion (exchange rate of Rp. 14,581 per US dollar), from the target of 14.5 US dollars, equivalent to Rp. 211.38 trillion.

This was conveyed by Acting Director General of Oil and Gas, Ministry of Energy and Mineral Resources (ESDM), Ego Syahrial. According to him, the realization rate is only one third of the target.

"We had targeted an investment of 14.5 billion US dollars. But the realization was only around 5.6 billion US dollars, it is still only a third far away," said Ego in a virtual press conference, Jakarta, Wednesday, August 5.

Ego explained that from the realization of US $ 5.6 billion, it consisted of the downstream sector amounting to US $ 712 million or equivalent to 10.38 trillion, while in the upstream sector only US $ 4.8 billion or equivalent to Rp.69.98 trillion was realized.

Then, the lifting target has not reached the target. Where the Ministry of Energy and Mineral Resources is targeting oil and gas lifting of 775 thousand barrels per day. However, today the lifting only reached 705 thousand barrels per day.

According to him, all this happened due to the COVID-19 pandemic and the decline in oil prices. This condition forces oil and gas investors to cut their investment and production plans by up to 40 percent.

"Indeed, the global climate is no longer good. Oil prices are also falling. The pandemic we are facing is also affecting large companies in the world. Companies cut capex by at least 30 percent," said Ego.