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Investment in upstream oil and gas zone reaches $3.98 billion

Jakarta (ANTARA News) – Investment in a upstream oil and gas zone in a initial half of 2017 reached US$3.98 billion, accounting for 29 percent of work module and bill set during US$13.8 billion, a Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) said.

“The investment reaches usually 29 percent of a target. The swell falls brief of expectation. We are also not happy with a fulfilment of investment that reaches 29 percent,” SKK Migas Chief Amien Sunaryadi pronounced here on Thursday.

The lower-than-expected investment was a outcome of double impact of investment in a upstream oil and gas zone that caused a opening of ancillary industries to decline. Hence, investment in a upstream oil and gas zone is critical for a country, he said.

He remarkable that a disappearing tellurian wanton prices and difficult regulations in a past were among a causes of low investment in a upstream oil and gas sector.

“The wish to make investment depends on mercantile calculation. If a tellurian wanton prices are low, doubt still prevails quite in scrutiny and no deposits are found, afterwards scrutiny and growth can't be conducted,” he said.

He pronounced a newly released regulations are not a means of low investment in a upstream oil and gas sector.

“As we have observed, a newly-issued regulations (have no impact on a low investment). Maybe a regulations released a few years ago had an impact,” he said.

Moreover, a supervision has revised presidential law series 79 of 2010 concerning handling costs that can be returned, he said. (*)

Article source: http://www.antaranews.com/en/news/111716/investment-in-upstream-oil-and-gas-sector-reaches-398-billion