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Oil and gas lifting, production slightly exceeds 2016 expectations
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Back to work: Pertamina Hulu Energi West Madura Offshore (PHE WMO) workers are moved in a personnel basket from a ship to the company’s oil rig off the coast of Madura Island in East Java. The company, a subsidiary of state-owned oil and gas giant Pertamina, is currently building two new oil rigs that will produce an additional 3,000 barrels of oil per day (bopd) on top of the current production output of 9,300 bopd. (JP/Wahyoe Boediwardhana)
T
he country’s oil and gas production and lifting, the colloquial term for ready-to-sell production, in 2016 has exceeded the government’s targets set in last year’s revised state budget.
Data from the Energy and Mineral Resources Ministry show that oil production reached an average of 831,000 barrels of oil per day (bopd) and gas production reached 1.42 million barrels of oil equivalent per day (boepd) throughout 2016, or 14 percent more than the original target.
Meanwhile, oil lifting reached an average of 820,300 bopd and gas lifting reached 1.2 million boepd in 2016. .
“In the revised state budget, we targeted lifting to reach 820,000 bopd for oil and 1.15 million boepd for gas. I appreciate all the hard work done by every stakeholder,” Energy and Mineral Resources Minister Ignasius Jonan said in a press release obtained by The Jakarta Post.
By the end of the year, the Indonesian Crude Price (ICP) averaged around US$39.50 per barrel, slightly lower than the 2016 revised state budget assumptions of $40 per barrel.
This is the first time in over a decade that oil and gas lifting has exceeded expectations as the country’s oil and gas reserves continue to be depleted due to a lack of new discoveries. However, the government is currently working on offering more incentives for upstream oil and gas players to encourage increased exploration activities. (bbn)
