The Jakarta Post
Indonesia is finding it challenging to reach this year's oil and gas lifting target, as the oil depletion rate – or "natural decline" – was higher than projected, the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) has said on Wednesday.
Crude oil production in the first quarter fulfilled 89 percent of the targeted daily average of 1.8 million barrels of oil equivalent per day (boepd).
Recent SKK Migas data shows that average crude oil lifting during the first quarter was 749,600 barrels of oil per day (bopd), while gas lifting was 5.9 billion metric standard cubic feet per day (mscfd).
“There are some blocks that are declining faster than what we had projected. It is hard to overcome,” SKK Migas chairman Dwi Soetjipto said during a press conference on Wednesday.
SKK Migas operation deputy Fatar Yani estimated that the country would likely close the year at 750,000 bopd, or 96.77 percent of the oil lifting target of 775,000 bopd.
“We are trying to boost ExxonMobil [in the Cepu Block] to exceed its production target of 220,000 bopd,” said Fatar.
Meanwhile, Dwi added that SKK Migas was still upbeat about reaching a higher year-end outcome, as 11 major projects were to start operating this year.
“With additional production of 13,587 bopd and 1.17 billion mscfd, we are optimistic about reaching our full-year target [of 2 million boepd],” said Dwi. (bbn)