The Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) has said that the country's oil and gas lifting, the colloquial term for ready-to-sell production, will meet 99 percent of its total target this year.
As stated in the revised 2017 state budget, the government targeted production at 815,000 barrels per day (bpd) and 6,440 million standard cubic feet per day (mmscfd) this year.
However, SKKMigas program and communications division head Wisnu Prabawa Taher said that some oil and gas fields, specifically the mature ones, did not generate the expected results.
“The declining pace at some fields was faster than expected,” Wisnu told reporters recently. “However, it was still reasonable because most of our fields had already been depleted.”
Furthermore, he said investment realization in the upstream oil and gas sector would also fall short of the target this year.
Wisnu said the sector recorded around US$8 billion to $9 billion in investments as of November and would reach a maximum of $11 billion before year-end, below the full-year target of $13.8 billion.
“Of the total realization so far, only 10 percent was spent for exploration activities. Hopefully, such activities can be boosted next year, especially considering the recent hike in global oil prices,” he said.
The price of global benchmark Brent crude reached this year’s peak of $64.69 per barrel on Dec. 11 after falling to $44.82 per barrel on June 21. (dmr)
Source: Viriya P. Singgih / The Jakarata Post
16 December 2017