JAKARTA (TheInsiderStories) - The Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas) announced that oil production of Indonesia only reached 679,500 barrels per day (bpd) below the government targets of 705,000 bpd, said the chair yesterday. The output also below the realization of the 2020 production of 708,500 bpd.
The agency also reported, the average Indonesia Crude Price jumped to US$59.01 per barrel, higher than the 2021 State Budget assumption of $45 a barrel and compared to 2020 at $42 per barrel. Then, the gas lifting below this year’ targets 5.64 million cubic feet per day (MMSCFD) to 5.53 MMSCFD. In total, oil and gas lifting during the 1Q of 2021 reached 1.66 million barrels of oil equivalent per day (BOEPD) under the targets of 1.71 million BOEPD.
According to the head of SKKMigas, Dwi Soetjipto, the weak of oil production in the first quarter was due to the low initial production level in December 2020 around 699,000 bpd. The performance of several fields also does not match the prognosis, such as Banyu Urip Field and Cepu Block operated by ExxonMobil Cepu Ltd., and Sukowati Field by PT Pertamina EP.
“The postponement of the drilling several wells and the incidents of unplanned shutdown in 1Q 2021, such as Train-1 and Train-2 BP Berau, CPGL Suban Plant and trips at BGP PetroChina Jabung, also contributed to 2021 oil production,” he told reporters virtually.
Four of the 12 projects that are targeted to be on stream this year, has been operate with total investment $1.63 billion and increased the oil and gas production capacity by 5,850 bpd and 69.5 MMSCFD. In detailed, the Belato field has been on stream since March 29 with initial production of 1,091 bpd in 2021 and continues to rise to peak production of 4,162 bpd in 2023.
Then, Merakes will increase the national gas supply with capacity to 400 MMSCFD and production rate of 391 MMSCFD which is on stream on April 26. Sutjipto also reported, during the first three months of 2021, upstream oil and gas investment worth of $2.4 billion, equivalent to 19.4 percent of this year targets of $12.38 billion.
SKKMigas targeting to lift the national oil production up to one million bpd by 2031 and need an investment around $6 billion to reach those targets. Based on the agency data, there will be 42 main developments up to 2027 with a total investment of $43.3 billion.
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
