T

he majority of oil and gas contractors operating in the country are expecting to produce less next year as their fields get more mature and prices remain under pressure as some companies are trying to slow down the output decline.

Any increase in production would only come from new fields, according to Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) data presented during a hearing with the House of Representatives Commission VII overseeing the energy sector.

Large mature blocks, such as Rokan, which is operated by Chevron Pacific Indonesia and the Mahakam block operated by Total E&P Indonesie, will be in decline.

The figures showed that Chevron expects to lift oil at a rate of between 247,900 barrels per day (bopd) and 253,900 bopd, lower than this year'€™s outlook of 276,000 bopd.

Total'€™s Mahakam is expected to produce between 55,700 bopd and 57,100 bopd in oil and condensate, lower from this year'€™s outlook of 65,700 bopd. Mahakam gas lifting is also expected to decline to between 1,198 million standard cubic feet per day (mmscfd) and 1,307 mmscfd, lower than this year'€™s target of 1,420 mmscfd.

'€œOur fields are old and in natural decline. That [drop] can reach 50 percent such as in the Tunu field. We are doing various work, such as well intervention, which can reduce the decline to only 10 to 15 percent,'€ Total'€™s Arividya Noviyanto said.

He also estimated that the capital expenditure for Mahakam next year would be less than US$1.5 billion, down from this year'€™s amount of around $2.3 billion partly because the company would drill fewer wells: around 77 next year compared to 107 this year.

Meanwhile, BP Berau is aiming to lift only around 900 mmscfd to 982 mmscfd of gas next year, lower than the current outlook of 1,012 mmscfd.

'€œThere will be a decline because we will have scheduled maintenance. We will likely produce 960 mmscfd,'€ BP Indonesia'€™s vice president for sales and commercial Budi Aguswidjaja said.

In contrast, Pertamina EP, a subsidiary of state-owned oil and gas company Pertamina, expected a slight increase in oil and gas lifting next year, thanks to some new projects that will start production. Oil lifting is expected to reach 114,500 bopd next year, higher than this year'€™s state budget target of 112,900 bopd. Meanwhile, gas lifting is estimated to reach 858 mmscfd.

'€œSeveral projects will be completed by the end of 2015, such as Matindok. Therefore, they can be in full operation and give additional output next year,'€ Pertamina EP president director Rony Gunawan said.

The Banyu Urip field at the Cepu block, which is currently operated by ExxonMobil Cepu Ltd., is among the few blocks that will produce more and become a major contributor to the national output next year. Banyu Urip has recently ramped up its production, thanks to the completion of its development projects, and is expected to be able to reach a peak production of 205,000 bopd this year.

For next year, SKKMigas expects that Banyu Urip will lifting an average of between 161,100 bopd and 165,000 bopd.

'€œFigures provided by SKKMigas are realistic and we can fulfill them. It is likely that we will come close to the high figure [165,000 bopd],'€ Erwin Maryoto, ExxonMobil vice president of public and government affairs, said.

Under its planned 2016 state budget, the government set a national oil lifting target of 830,000 bopd to 850,000 bopd and a gas lifting target of 1.1 to 1.2 million barrels of oil equivalent per day (mboepd). This year lifting is expected to reach 825,000 bopd and 1,221 mboepd for gas.

As of June 9, the output stood at 802,616 bopd and for gas at 8,261 mmscfd.

Indonesia, which is now trying to re-activate its membership in the Organization of Petroleum Exporting Countries (OPEC), has been struggling to lift its production. The country has frequently missed its annual production targets as its old fields could no longer produce as much as expected.