Indonesia Expects Rise in Investment in Oil, Gas Sector in 2013

Indonesia expects to see a hike in investment in oil and gas sector this year after approving as many as 274 work plans and budgets from contractors.

Jakarta Post reported that Energy and Mineral Resources Minister Jero Wacik said in Jakarta on Tuesday that investment for 2013 of $26.2 billion was anticipated.

"We want all contractors in the country to implement their program as specified in their plans so that our target for oil and gas output and state revenue can be achieved,” he said.

Of the 274 oil and gas contractors, 74 are in the production phase, the newspaper said. The total investment for these 74 contractors is around $23.5 billion. They plan to drill 1,200 developing wells, 1,100 work-over wells and 100 exploration wells.

Meanwhile, the 200 contractors still on the exploration phase will invest $2.7 billion this year, to drill 75 exploration wells and over 80 coal bed methane (CBM) gas exploration wells.

For 2013, oil output should reach 900,000 barrels per day of crude oil and 1.36 million of barrels oil equivalent per day (BOE/D) of gas.