Higher oil prices boost upstream revenue

Jakarta (ANTARA) — The Special Work Unit for Upstream Oil and Gas Activities (SKK Migas) has said that a rise in world oil prices is increasing the revenue of the upstream oil and gas industry. “From upstream there will be increased revenue, prices are rising,” said SKK Migas chief Djoko Siswanto when contacted at the Ministry of Energy and Mineral Resources (ESDM) office in Jakarta on Friday. Oil prices surged amid concerns over supply disruptions from the Middle East, with Brent rising 4.93 percent to $85.41 per barrel, while U.S. WTI jumped 8.51 percent to $81.01 per barrel. In January 2026, the average Brent crude price (ICE) was $64 per barrel, and WTI stood at $57.87 per barrel. “If you look at the downstream, I am not sure. But upstream (the impact) is positive,” said Djoko Siswanto, nicknamed Djoksis. Iranian media reported that the Strait of Hormuz had been “effectively” closed following the US-Israel attack. The Strait of Hormuz handles around one-fifth of the world’s oil trade as well as a large volume of LNG exports from Qatar and the United Arab Emirates. Around 20 percent of global daily oil consumption, or about 20 million barrels per day, passes through that corridor. PT Elnusa Tbk (Elnusa) believes that if the rise in global oil prices lasts for a long time, it could open opportunities to increase exploration and exploitation activities in marginal or remote fields. Finance Director of PT Elnusa, Nelwin Aldriansyah, explained that when crude oil prices were below $60 per barrel, upstream oil and gas players deemed marginal fields unviable to develop. That unviability was driven by the low sale value, thereby not generating economic returns for upstream players. Therefore, if current oil prices above $80 per barrel persist for a long period, Nelwin believes upstream oil and gas players will be motivated to undertake exploration and exploitation of oil and gas fields.