Cost Recovery Cap Won’t Affect 2012 Oil Lifting

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The success of Executive Agency for Upstream Oil and Gas (BP Migas) in pressing down cost recovery as much as US$2.3 billion will not harm the oil and gas production this year.

Head of BP Migas, R. Priyono, said that a cooperation contract contractor (KKKS) was US$17.4 billion, but BP Migas successfully pressed it down to US$15.1 billion. It means the efficiency was US$2.3 billion. He said that the US$15.1 billion of cost recovery was used to produce oil and gas of 2.25 million barrels of oil equivalent.

Priyono also said the cost recovery for 2012 was discussed in mid-2011. At that time, it was estimated to be US$12 billion. However, in December 2011, the number increased US$17.4 billion following the increase in oil price.