JAKARTA (TheInsiderStories) – The performance of oil & gas sector delivered a mixed performance in 20017, with state revenues higher than targeted, while oil & gas lifting as well as investments were slightly higher than planned.
Based on data presented by the Special Task Force for Upstream Oil & gas (SKK Migas), the oil & gas industry contributed state revenues of US$13.1 billion in 2017, higher than the target set in the Revised State Budget 2017, which amounted to US$12.2 billion.
According to the Head of SKK Migas Amien Sunaryadi, the higher revenue contribution was due to higher-than-expected Indonesian Crude Price (ICP), which rose towards the end of the year. The realized average ICP in 2017 stood at US$51.19 per barrel, higher than ICP set in the State Budget of US$48 per barrel.
Top Ten Oil Producers
Oil & gas lifting reached 1.944 million barrels of oil equivalent per day (boepd) or 98.9 per cent, compared to the target of 1.965 million boepd.
The lifting amounted to 803,800 bopd, representing 98.65 per cent from a target of 815,000 bpd, while gas lifting stood at 6,386 million standard cubic feet per day, or 99.2 per cent from a target of 6,440 MMscfd.
“We have tried our best to compensate for natural production declines by speeding up existing projects and stepping up efforts to maintain production levels,” Head of SKK Migas Amien Sunaryadi told reporters.
In 2017, 14 new projects commenced production, adding 3,800 bopd and 587 MMscfd of gas.
The realized investment in the oil & gas industry was however quite discouraging. The 2017 realized investment reached only US$9.33 billion, lower than the Work Plan & Budget proposed by the oil & gas producers, which amounted to US$12.29 billion.
Of this amount invested, US$180 million went into exploration and US$9.15 billion was spent on exploitation or production activities.
The amount of cost recovery reached US$11.3 billion, slightly higher than the target of US$10.7 billion.
Parliament members have been criticizing the Energy and Mineral Resources Ministry because the increase of the cost recovery was not accompanied by any increase in oil & gas lifting.
The Ministry defended themselves by pointing out that the rise in the cost recovery reflects an increase in costs to produce oil & gas. Most Indonesian oil & gas blocks are ageing, and therefore required more money to yield crude oil & gas.
The top oil & gas producers were little changed. Chevron Pacific Indonesia, Mobil Cepu Ltd and Pertamina EP remained the top three oil producers, which respectively contributed 28 per cent, 25 per cent and 10 per cent of the country’s oil lifting per day.
Meanwhile, the top four gas lifting contributors were Total E&P Indonesia with a share of 20 per cent, followed by BP Tangguh 14 per cent, Pertamina EP 13 per cent and ConocoPhillips (Grissik) at 13 per cent.
Currently, there are 255 oil & gas Working Areas or blocks still in operation, down from 280 WKs in 2016. Of these, 87 oil & gas blocks are already being exploited. Of these, 73 blocks are already in production and 14 blocks were in development stages.
Those that are still in exploration stages consisted of 119 conventional oil & gas blocks and 49 non-conventional oil & gas blocks.
As many as 31 oil & gas blocks are in the process of termination, for various reasons, including lack of capital, inability to find commercially viable oil & gas reserves and others.
Written by Staff Writer, edited by Roffie Kurniawan, email: email@example.com