Indonesia: SKK Migas lowers upstream oil and gas investment target in 2020

• Indonesia has lowered its upstream oil and gas investment target by 15% in 2020 amid continued global economic pressures on the commodities.
• The Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) announced a revised investment target of USD11.8bn, down from the initial USD13.8bn. As of May 20, investments reached around one third of the revised target.
• “SKK Migas will execute multiple strategies to maximize upstream investment,” said SKK Migas head Dwi Soetjipto in a statement, citing strategies such as cost efficiency, data openness and administrative streamlining.
• SKK Migas’s revised target, however, remains 3% higher than realized investments in 2019, when funding reached USD11.49bn, task force data show.
• SKK Migas previously revised down its oil production target by 4% to 725,000 bpd. The task force also lowered its gas production target by 14.2% to 5,727 million metric standard cubic feet per day (mmscfd), due to similar economic pressures.
• It also expects upstream oil and gas revenue to be 38% lower than expected at USD19.96bn, assuming that the Indonesian Crude Price (ICP) – as projected by the Finance Ministry – averages USD38 per barrel in 2020.

External Link : https://www.thejakartapost.com/news/2020/06/11/skk-migas-lowers-upstream-oil-and-gas-investment-target-this-year.html