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NEWS UPDATES Asean Affairs   September 20, 2018  





Budget committee agrees to set cost recovery target at $10.22b

The House of Representatives budget committee agreed on Wednesday with the government’s proposal to set the 2019 cost recovery target at US$10.22 billion, a 6 percent decrease from this year’s target of $10.9 billion.

Cost recovery is an approach for recovering an oil and gas contractor’s capital expenditures and operating expenses after the initial production phase and under a production sharing contract (PSC).

“We agreed on the figure of $10.22 billion. Previously, the House Commission VII [overseeing energy] agreed on a cost recovery target between $8 billion and $10.2 billion,” House budget committee chairman Said Abdullah said on Wednesday.

The agreement was reached in a meeting between members of the committee and government representatives, including those from the Finance Ministry’s Fiscal Policy Office and other energy stakeholders.

The 2019 cost recovery target is lower than the initial government proposal of $11.3 billion, as stipulated in a financial note in the 2019 state budget bill that was introduced last month.

Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) deputy chairman Sukandar said one of the reasons that the target was lowered was due to the implementation of the gross split scheme, which involved 12 oil and gas blocks up till September.

“With the policy, we can save around $800 million to $1 billion in 2019,” he said.

Sukandar also attributed the lower target to an adjustment in the total cost of production from $5.59 billion in 2018 to $5.13 billion in 2019.



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ASEAN  ANALYSIS

This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


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