Oil and gas (migas) investment realization in 2018 grew by 14.9% to US$12.69 billion. This figure comprises upstream migas investment of US$11.99 billion, a 16.85% increase compared to the previous year, while downstream investment reached US$689.66 million, a decrease of 10.92% from the previous year. Last year's upstream migas investment only reached 84.65% of the target of US$14.75 billion. Meanwhile, the upstream migas investment prognosis for 2019 is projected to grow to US$14.75 billion.
This growth in migas investment is the first in the last five years. Since 2014, migas investment has consistently declined in line with the fall in global crude oil prices to below US$30/barrel.
Furthermore, the shift in new migas contracts to a gross split system, from the previous production sharing contract (PSC) cost recovery scheme, also contributed to suppressing migas investment in Indonesia.
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