The Special Task Force for Upstream Oil and Gas Business Activities reported the realization of oil and gas lifting (oil and gas) until September 2020 amounted to 1.8 million barrels oil equivalent per day - Photo by SKKMigas Office

JAKARTA (TheInsiderStories) – The Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas) reported the realization of oil and gas lifting reached 1.913 million barrels oil equivalent per day (MBOEPD) in nine months (9M) from last year amounted to 1.8 MBOEPD, showed by the agency data. In details, the oil lifting recorded of 710.2 bpd and gas lifting of 6.73 MBOEPD.

The office also reported total realization investment amounted to US$6.9 billion or fell by 17.86 percent from a year ago of $8.4 billion. In April, the unit of energy and mineral resources minitry cut this year’ oil and gas production outlook to 725,000 bpd and 5,727 million cubic feed per day (MMCFD), respectively, amid the low demand. In the 2020 State Budget, the government targeting the oil lifting could reached 750,000 bpd and gas 5,886 MMCFD.

According to the chairman, Dwi Soetjipto, because the delays of some projects that were set to start producing in 2019, maintaining last year’ oil production level might be difficult to meet the targets. On the gas side, he rated, the government arm has forecast a 12.4 percent output growth, targeting production levels of 6.67 MMCFD in 2020.

Pressure on the national oil company is mounting as the Mahakam and Rokan fields have both witnessed higher decline rates since they were awarded to the company in 2018. The start of production from the Eni-operated Merakes field will certainly boost Indonesia’ gas output, but the real impact of this field will not be felt until at least 2021.

Is estimating, with no major oil projects in the pipeline, oil production will continue to decline until Pertamina drills further on the Rokan block. The SKKMigas targeting to lift the national oil production up to one million barrels per day by 2031 and needs investment around $6 billion. Based on the agency data, there will be 42 main developments up to 2027 with a total investment of $43.3 billion.

He added, the projects are divided into 23 offshore projects and 19 onshore projects. Later, the projects are expected to contribute to oil production of 92,100 bpd and 6.1 billion MSCFD.

Written by Editorial Staff, Email: theinsiderstories@gmail.com