Oil Production Cost Must be Viewed Proportionally
Tuesday, 30 January, 2007 | 16:59 WIB

TEMPO Interactive, Jakarta: The Upstream Oil & Gas Executing Agency (BP Migas) has asked all parties to view oil recovery costs in Indonesia proportionally.

The average cost of US$9 per barrel is regarded to still be low compared to other countries.

Kardaya Warnika, BP Migas Head, said the rise in recovery costs in Indonesia was not more than one percent.

In 2004, oil production cost in Indonesia was US$9.28 on average.

“The cost went down by one percent to US$9.17,” he said on Tuesday (30/1).

Quoting data from the United States Department of Energy, Kardaya said cost recovery in the US was between US$14 and US$15 on average.

“In Canada, it reaches US$30 per barrel,” he said.

According to Kardaya, oil production costs in each country are different.

Earlier, the Development Finance Controller (BPKP) said cost recovery in Indonesia was still high compared to other countries.

According to the BPKP, oil production cost in Indonesia was US$9 on average per barrel whereas in Malaysia, the average cost was US$4.

Ali Nur Yasin