JAKARTA (TheInsiderStories) – Indonesian oil and gas lifting realization during 2019 only reached 1.8 million barrels of oil equivalent per day (boepd), far from the target set by the government of 2.025 million boepd, country’s upstream oil and gas regulator said on Thursday (01/09). The figure was equivalent to 90.5 percent of the 2019 state budget target.
“However, the realization is already higher than our work plan. The figure is equivalent to 101.1 percent of our internal target,” the chief Dwi Soetjipto said in a press conference at his office.
The regulator, known as SKK Migas, detailed for oil lifting only reached 746,000 barrels per day (bpd), equivalent to 96.3 percent of the state budget target of 775,000 bpd. While the gas lifting realization reached 5,934 mmscfd or 84.5 percent of the target of 7,000 mmscfd.
According to Soetjipto, Indonesia’s oil lifting potential could reach 752,000 bpd. However, there are several obstacles that cause the realization below the target. While gas lifting has the potential to reach 6000 mmscfd. However, because there was a gas that had not been absorbed last year, gas lifting only reached 5,934 mmscfd.
Several incidents that caused the realization to be reduced include, the leak of Exxon Mobil Cepu Limited in Cepu. This caused a decrease in lifting to 2,900 bpd.
“Pipeline leakage, electricity problems at PHE OSES unplanned shut down 46 Cooperation Contract Contractors, H2S Spike HCML issues, Riau forest fires reduce oil production of Chevron Pacific Indonesia,” he said.
“We are still waiting for the maximum results from all development drilling. There were also delays on several offshore drilling platforms caused by bad weather earlier this year and there were also problems with production facilities, maintenance requirements,” he adds.
Soetjipto said all problems have been addressed and the company expected to increase production in this year
“We are also pushing several oil and gas contractors to maximize their lifting,” he said adding that more production would come from projects of PT Pertamina EP, Pertamina Hulu Mahakam, Pertamina Hulu ONWJ, OSES, Medco E&P Natuna, Kangean Energy Indonesia, Premier Oil Indonesia and Eni Muara Bakau.
For 2020, SKK Migas plans to increase production through development drilling up by 20-25 percent, with 407 development wells, 812 WO, and 24,843 WS.
The transformation of resources to production, said Soejipto, will be carried out by machining delineation of the machete structure, re-entry of lofin-2, onstream POD in the Sidayu field, accelerating chemical EOR, through field trial activities in Sago, Gemah, Jatibarang, EOR studies in the Pedada field, Kaji- Hopefully, Belida.
Exploration for major discoveries was carried out among others with 2D Jambi seismic (open area) in the second year with an investment of US$75 million.
In the 2020 state budget, a high target for oil was set at 755 mbopd with a technical figure of 705 mbopd, while for gas the target was set at 6,670 mmscfd with a technical number at 5,685 mmscfd.
The expenditure in 2020 amounted to $13.8 billion, with the largest portion for production amounting to $9.2 billion, development of $2.5 billion and exploration of $1.2 billion, and the rest of the administration.
Written by Lexy Nantu, Email: email@example.com