JAKARTA (TheInsiderStories) – Indonesia state revenues from the upstream oil and gas industry in 2018 increased significantly to US$ 17.5 billion (unaudited) or around Rp 215 trillion. This figure exceeds the target of the 2018 State Budget which amounted to US$ 11.9 billion equivalent to Rp 160.6 trillion.
According to the Head of the Special Work Force for Upstream Oil and Gas Business Activities Dwi Soetjipto, the achievement of state revenues [147 percent above the 2018 State Budget], convincing the government to target of state revenues in 2019 to be US$ 17.5 billion.
“Looking at the increasing trend of revenues, we are optimistic can achieve, even exceed the target set in the 2019 State Budget,” he said in Jakarta on Wednesday (01/16).
In addition to state revenues, the oil and gas lifting target is also set above the 2018 State Budget target, from the previous 2 million barrel oil equivalent per day (boepd) to 2.25 million boepd in 2019.
The oil lifting target of 775 thousand barrels per day (bopd) and the natural gas lifting target of 1,250 million boepd are expected to support the achievement of the target of state revenues and investment.
Meanwhile, upstream oil and gas investment in 2019 is targeted at US$ 14.79 billion, with the target of cost recovery being pegged at US$ 10.22 billion. Realization of investment in 2018 amounted to US$ 12 billion from the target in the agreed WP&B amounting to US$ 14.2 billion or only 84 percent.
The optimal realization has also been affected by cost recovery of US$ 11.7 billion (unaudited) or 112 percent of the 2018 State Budget target of US$ 10.1 billion.
Lifting oil and gas by 96 percent in 2018 is projected to increase supported by the plan of 13 onstream projects in 2019 with a total investment value of US$ 702 million.
“Thirteen projects are expected to provide additional production of 8,600 bopd and 1.3 billion cubic feet per day,” he added.
The projects are as follows: Betara Complex Project – Cooperation Contract Contractor (KKKS) Petrochina International Jabung Ltd. and The Bright Sirasun Batur Phase 2 Project – Kangean Energy Indonesia KKKS.
In addition, there is the Ario Damar-Sriwijaya Phase 2 project – KKKS PT Tropik Energi Pandan; Temelat Gas Flow Project to Gunung Kembang Selatan – PT Medco E&P Indonesia KKKS; Bukit Tua Phase 3 Project – Petronas KKKS Carigali Ketapang II Ltd.
So far, there are the Kedung Keris Full Steam Well Project – ExxonMobil Cepu Limited KKKS; Buntal-5 – KKKS Medco E&P Natuna Ltd.; Bison-Iguana-Gajah Putri Project – KKKS Premier Oil Natuna Sea BV; Suban Compression Project – ConocoPhillips (Grissik) Ltd. KKKS.
The last are the Betung Compressor – KKKS PT Pertamina EP installation project; Bayan Gas Production Facilities Project – Manhattan KKKS Kalimantan Investments Pte. Ltd.; Project YY – KKKS PHE ONWJ; and the Meliwis – KKKS Santos Project (Madura Offshore) Pty. Ltd.
On the other side, the national strategic projects that have not been onstream in 2019 includes the Tangguh Train 3 Project targeted for 2020, the Jambaran Tiung Biru Project targeted for 2021, the Indonesia Deep Water Project (IDD) targeted in 2024, and the Abadi Project targeted for the year 2027, remains a priority.
The achievement of the four national strategic projects became one indicators of the government performance in 2019, not like the previous year. It means, this year the government must be completed all existing projects.
Furthermore, to be able to meet domestic oil and gas needs, efforts to increase lifting must be supported by massive exploration activities. In 2019, the RRR was pegged at 100 percent, declined from before amount of 105,6 percent.
A total of 45 plan of development (PoD) are approved throughout 2018, providing additional oil and gas reserves which are proven to be around 831.5 million barrels of oil equivalent. The additional reserves have a significant impact on the achievement of RRR up to 105.6 percent of the 2018 target.
However, the discovery of new reserves will be greatly needed to maintain current oil and gas production and ensure Indonesia’s oil and gas energy supply in the future.
Written by Daniel Deha, Email: firstname.lastname@example.org