Oil and gas contractors have proposed a 15.99 billion U.S. dollars investment for upstream activities in Indonesia in 2010, or a 41 percent increase from 2009.
Oil and gas contractors have proposed a 15.99 billion U.S. dollars investment for upstream activities in Indonesia in 2010, or a 41 percent increase from 2009, although investment in 2009 failed to meet the target, the Jakarta Post quoted an official as saying on Thursday. Anditya Maulana, head of the Operation Division of the Indonesian Upstream Oil and Gas Regulator, told reporters Wednesday that the investment figure was based on the work program and budget (WPNB) submitted by oil and gas contractors to his office.
"Of the total planned investment, about 13.63 billion dollars is expected from production working areas, while the remaining 2.36 billion dollars is expected from exploration working areas," he said.
An energy analyst Pri Agung Rakhmanto said the figure from the production areas was still reasonable as two massive oil and gas projects, the Cepu block and the Tangguh gas field, were likely to attract huge investment next year.
However, he said the high figure was not necessarily a good indication.
"Please remember that part of the investment will be paid back by the government to the contractors under the cost recovery mechanism," he said.