Government sees higher oil and gas investment

The Jakarta Post, Jakarta

The government expects investment in the oil and gas sector to increase by 41 percent this year to US$7.492 billion, up from $5.305 billion last year.

Of the total amount, $779 million is expected to be invested in exploration activities, $2.097 billion for development of oil and gas fields, $3.931 billion for oil and gas production and $683 million to cover administration costs, detikcom quoted a statement from the Ministry of Energy and Mineral Resources on Friday.

In 2002, investment in the sector stood at $5.438 billion, up from $4.202 billion in 2001.

The rising investment is expected to result in a rise in national oil and natural gas reserves.

Indonesia, the only Asian member of the Organization of Petroleum Exporting Countries (OPEC), has become a net importer recently due to the rise in fuel consumption and the depletion of its oil fields. Some analysts have warned that the deficit would widen in the future, should Indonesia fail to attract investors to find more oil fields to add to the national oil reserves.

Now, the ministry said, Indonesia has 10.82 billion barrels of proven and possible reserves, up from 9.82 billion barrels from the previous year; while proven and possible natural gas reserves now stand at 218.13 trillion cubic feet (TCF), up from 198.13 in the previous year.

In 2002 and 2001, national oil reserves were flat at 9.75 billion barrels, higher than 9.61 billion barrels in 2000 but lower than the 1999 figures of 9.82 billion barrels.

Meanwhile, natural gas reserves increased from 137.79 TCF in 1997 to 176.59 TCF in 2002.