State revenue from upstream oil, gas industry reaches $4.4 billion

Trading

State revenue from the upstream oil and gas industry reached US$4.4 billion (Rp62 trillion) in the first quarter of this year, according to the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas).

The revenue collected was 44 percent of the target of US$9.95 billion for this year, SKK Migas Chief Dwi Soetjipto informed at a press conference on the upstream oil and gas performance in the first quarter of 2022, in Jakarta on Friday.

“The amount of the state revenue is quite large, reaching US$4.4 billion, or 44 percent of the target of US$9.95 billion for the year,” he said.

He attributed the high state revenue to a surge in global crude prices as a result of the improving pandemic situation and the Russia-Ukraine war, which pushed the average Brent price to a record high of US$112.46 per barrel in March 2022.

According to Soetjipto, the price of crude still has the potential to hover above US$100 per barrel in 2022 and 2023.

Meanwhile, the global gas price has also crossed US$25 per MMBTU (Metric Million British Thermal Units). In the long run, the Asian gas price is still projected to approach US$10 per MMBTU, which is higher compared to Europe and the United States.

Soetjipto further said that national oil and gas lifting in the first quarter of 2022 reached 611.7 thousand barrels per day (BOPD), or 87 percent of the target of 703 thousand BOPD set by the state budget.

Meanwhile, gas lifting reached 5,421 MMSCFD (Million Standard Cubic Feet per Day), or 92 percent of the target of 5,800 MMSCFD set by the state budget.

Source: Antara News