Parliament and Indonesia Government Agree on Gas Lifting Amounting 2013 2.260 Thousand BOEPD

Illustration: House of Representatives of the Republic of Indonesia (DPR RI) at Senayan, (Photo Doc/THNews)

JAKARTA (Telukharunews) - Meetings of the Commission VII of the House of Representatives with the Ministry of Energy, Monday (10/9) afternoon, agreeing lifting gas in 2013 amounted to 2.26 million draft budget BOEPD (barrels of oil equivalent per day), consisting of lifting 900,000 barrels of oil per day and lifting gas 1.36 million barrels of oil equivalent per day.

The meeting led by the Chairman of Commission VII Sutan Bhatoegana, also agreed to Indonesia Crude Price (ICP) U.S. $ 100 per barrel.

This is in accordance with the Financial Memorandum speech read by President Susilo Bambang Yudhoyono, August 16, 2012.

Minister Jero Wacik explained on that occasion, oil and gas production continued to decline since 1996, and is expected to reach its lowest point in 2012 and 2013. Increased production will start to happen in 2014, mainly from the Cepu Block. Gas production will also start to increase in 2013.

If combined, the oil and gas production in 2013 will reach 2.26 million barrels of oil equivalent per day in 2014 amounted to 2.393 million barrels of oil equivalent per day and 2.57 million barrels of oil equivalent in 2015.

While the Indonesian crude oil price projections (ICP) in 2013, based on world oil prices tended to increase in the first quarter of 2012, but it tends to fall at the beginning of the second quarter of 2012 as a result from the easing of tensions in the Middle East and the U.S. economic recovery. In the third quarter of 2012, world oil prices have increased again because of worsening geopolitical situation in the Middle East.

In addition, the oil price forecast in 2013 is also based on various sources of WTI, and Brent Reuters ranging from U.S. $ 65-140 per barrel.

"We calculated that if taking the number 100 as a basic assumption (oil prices) will be safe enough to face the world oil price shocks in the future. Course, we can not guarantee it will for sure (ICP) in the 100 because it concerns the world and us," he said .

However, he added, according to the Ministry of Energy, ICP of U.S. $ 100 per barrel, be accountable to the basic assumptions of 2013.

Parliament and Government also agreed on the volume of fuel and fuel subsidies amounted to 46.01 million KL, consisting of premium / bioethanol KL 29.20 million, 1.70 million KL of kerosene and diesel / biodiesel 15.11 million. 3 kg LPG agreed as 3.86 million tons.

As for biodiesel subsidies, agreed Rp 3,000 per liter. Bioethanol subsidies Rp 3,500 per liter.

LGV was agreed subsidy of Rp 1,500 per liter and Alpha fuel subsidy of Rp 642.64 per liter by ICP assumption of U.S. $ 100 per barrel and the exchange rate of Rp 9,300 per liter. (EMR)