Cost Recovery for Oil and Gas Exploration to Rise

Cost recovery for oil and gas exploration next year is estimated to rise to US$13.01 billion as oil and gas companies try to increase oil production, the Ministry of Finance says.

Cost recovery paid by the government to oil and gas companies this year is set at $11.05 billion, with a best effort of $10.05 billion, as requested by the House of Representatives. The ministry said the increase was aimed at boosting national oil and gas output to meet production targets.

Next year's national crude oil output is set at 965,000 barrel per day, according to the 2010 budget bill, up from the 960,000 barrel per day expected this year.