Target for oil revenues is reachable
Target for oil revenues is reachable
JAKARTA (JP): The government will achieve its target of Rp
12.85 trillion (US$5.89 billion) in revenues from the oil and gas
sector this fiscal year due to improving oil prices on the world
market, a minister says.
"The government, which was forced to use budgetary reserves
last fiscal year, therefore will not need to dip into budgetary
reserves again this fiscal year," Minister of Mines and Energy
I.B. Sudjana told the Budgetary Commission of the House of
Representatives (DPR) in a hearing last night.
Sudjana explained that Indonesia has been able to maintain its
crude oil production at 1.53 million barrels per day, while oil
prices are increasing on the world market.
He said Indonesian crude oil prices from April to August this
year averaged $16.36 per barrel, slightly higher than the $16
targeted by the government under its budget plan.
During the first quarter of this fiscal year, oil revenues
reached Rp 1.99 trillion.
According to Sudjana, oil prices on the world market will
stabilize above $16 a barrel until the end of this year due to
increasing demand in the northern hemisphere during the winter.
He assured the commission members: "With the robust oil
market, the government will not need to use its budgetary
reserves, which are estimated at Rp 1.7 trillion, this fiscal
year."
On Monday, the average price of OPEC's oil was recorded at
$16.59 per barrel, as compared to $16.86 in August and $15.61 in
September. The price of Brent was $16.90 on Monday, as compared
to 16.92 in August and $15.99 in September, while the price of
West Texas Intermediate was $18.33 against $18.40 in August and
$17.35 in September.
The government expects to receive oil and gas revenues of Rp
12.85 trillion this fiscal year, including Rp 9.50 trillion from
oil and Rp 3.35 trillion from natural gas. This fiscal year's oil
and gas revenues will be 15 percent lower than the Rp 15.12
trillion budgeted for last fiscal year.
In addition to the gas and oil revenues, the government also
expects to receive Rp 2.52 trillion in profits from the domestic
sales of fuel this fiscal year. "This target will also be
reachable," he said.
Natural gas
Sudjana was optimistic that revenues from natural gas, set at
Rp 3.35 trillion, will be met, considering that gas prices are
linked to oil price developments.
He noted that natural gas revenues during the first quarter of
the fiscal year (April to June) reached Rp 773.1 billion.
He said the government has asked companies involved in the
petroleum industry to maintain their levels of production and
improve efficiency.
"To maintain levels of production, the state oil company
Pertamina and its contractors will invest some $4 billion this
year," he said.
"During the first quarter of this fiscal year, Pertamina and
its contractors spent $2 billion for oil exploration and
production," he added. (fhp)
Oil market -- Page 4