JAKARTA (TheInsiderStories)—Indonesia’s oil and gas did not reach investment and production target in the first half of this year.
According to the Upstream Oil and Gas Regulatory Special Task Force data, the realized investment in the upstream oil and gas in the first half of this year reached US$3.9 billion, 27 per cent of this year’s target of US$14.2 billion.
The Head of Upstream Oil and Gas Regulatory Special Task Force Amien Sunaryadi projected upstream oil and gas realized investment cannot reach US$14.2 billion. He predicted the realized investment will only reach US$11.1 billion or 78 per cent of the total target.
He added the investment has not reached the target due to projects delay and not counted as 2018 projects. “The FID [final investment decision] backs off for example, or when the FID is done, but the procurement delays. It is not canceled, but the schedule delays,” he said on Friday (6/7).
Sunaryadi added some poor performance of main upstream activities contributed to the low investment. The realized two-dimensional (2D) seismic survey only reached 237 kilometers or 4 per cent of the 4,666 km work plan and budget (WP&B) target. In addition, the realized three-dimensional seismic (3D) only reached 1,541 square kilometers from 2,382 square kilometers or 26 per cent of the WP&B target.
Furthermore, the exploration activities reached 11 wells or only 10 per cent of 104 wells target. The well development drilling reached 129 wells or 45 per cent of 289 wells target. Re-work activities reached 324 wells or 51 per cent of 637 wells target, while well maintenance reached 31,151 activities or 55 per cent of 56,184 target.
Sunaryadi mentioned the land acquisition become the culprit of the lack of the oil and gas investment in the first half of this year.
Despite the low oil and gas investment target, the country surpassed the state revenue target from oil and gas in the first half of this year. It reached US$8.5 billion, equivalent to 71 per cent of US$11.9 this year target. The oil and gas price hike became the main factor of this state revenue jump. Surnayadi projected the oil and gas state revenue will reached 120 per cent of the target.
Oil and Gas Production
Indonesia’s oil and gas production also did not reach the target in the first half of this year. Oil and gas lifting only reached 1.923 million barrel oil equivalent per day (mboepd), below this year target of 2 mboepd.
Surnayadi projected the oil and gas lifting will not reach target until the end of this year. He calculated the lifting will only reach 1,891 mboepd or 95 per cent of target. It consists of 771,000 barrel oil per day (bopd) oil or 96 per cent of 800,000 bopd target, while gas lifting reached 1.152 mboepd or 93 per cent of 1.2 mboepd target.
He added the main cause of the oil lifting due to the mature fields. The five biggest oil producers are Mobil Cepu LTD, PT Chevron Pacific Indonesia, PT Pertamina EP, Pertamina Hulu Mahakam, and CNOOC.
Furthermore, the gas lifting did not achieve target due to the commercialization disturb namely limited consumers and infrastructures. The five biggest gas lifting are BP Berau LTD (Tangguh), Pertamina Hulu Mahakam, ConocoPhillips (Grissik) LTD, PT Pertamina EP, and Eni Muara Bakau.
“There are gas consumers, but there are no buyers or the transporter infrastructure does not exist,” he concluded.