JAKARTA (RAMBUENERGY.com) – Indonesian Special Task Force for Upstream Oil and Gas (SKK Migas) said it will propose cost recovery of oil and gas sector for 2017 at US$11.77 billion, up US$3.77 billion from US$8 billion this year.
The proposed cost recovery represents an increase of 32 percent in line with operational costs proposal submitted by the country’s oil and gas production sharing contractors (PSCs).
The planned cost recovery is pending on the result of hearing on the 2017 draft State Budget between the House Commission VII which overseas energy sector and the acting Energy and Mineral Resources Minister Luhut Binsar Panjaitan.
As for this year, SKK Migas expects the cost recovery to be higher than plan given that in the first half, the cost recovery already reached US$5.5 billion. As of August, the cost recover already reached US$6.5 billion and is likely to be the target set in the State Budget of US$8 billion.\
The upstream oil and gas authority monitors the cost recovery through centralized and integrated vendor database (CIVD), monitoring of PSCs activities and conducting vendor audit. (*)