Indonesia Reports 90% Oil and Gas Lifting
As of the first semester this year, Indonesias ready-to-sell oil and gas production, known as lifting, already reached USD1.8 million boepd (barrel of oil equivalent per day) or 90% of the target set in the State Budget.
The Upstream Oil and Gas Regulatory Agency (The SKK Migas) has reported that oil and gas lifting by the end of June this year reached 90 percent of the target, said Agung Pribadi from Ministry of Energy and Mineral Resources on Thursday (11/7).
He further elaborated that oil lifting reached 753,000 barrels of oil per day (bopd) – or 97% of the target, while gas lifting stood at 1.05 million barrels of oil equivalent per day (boepd), or 80% of the target.
As for oil lifting, we could even minimize the decline rate by 3%. Thus is an achievement, given that the average natural decline rate in general is around 15-20% for the majority of mature oil fields in Indonesia, Agung said, adding that new on-stream projects in YY-ONWJ, Panen-Jabung, and Kedung Keris-Cepu fields are expected to increase lifting in the second semester.
These three fields are expected to produce additional oil, with total project production of 10,000 bopd staring the fourth quarter this year. We also expect additional oil production from Merangin II block with additional production of around 1.500 bopd from its existing production from the beginning of this year, Agung said.
Agung acknowledged that gas lifting did not perform well in the first semester, citing LNG cargo in Bontang, East Kalimantan that did not produce gas as expected. A number of new gas developing wells including in Mahakam and Pangkah did not yield optimum production outputs, he added.
Agung expressed hope that gas drilling at new wells in the second semester this year will increase as gas demands in the second semester this year are expected on the rise. As of the end of the first semester, gas project at TSB Phase 2 as well as Seng and Segat fields have begun their on-stream projects with additional production reaching a total 220 mmscfd purchased by domestic buyers.
We hope that gas lifting in the second semester will be more optimum. We expect that gas lifting will increase as we still have six gas projects until the end of this year, with the estimated additional production reaching 280 mmscfd in the second semester, Agung said.
He went on saying that the SKK Migas and Oil and Gas Contractors (KKKS) will continue to carry out sustainable development programs and exploration to find new oil and gas reserves.
For the record, 75% of national oil lifting is contributed by five major Indonesian KKKS, among others PT Chevron Pacific Indonesia (194,000 bopd), ExxonMobil Cepu Limited (220,000 bopd), Pertamina EP (80,000 bopd), PT Pertamina Hulu Mahakam (37,000 bopd), and PT Pertamina Hulu Energi Offshore South East Sumatera (29,000 bopd).
In the meantime, 65% of the total national gas lifting is contributed by the following KKKS, namely BP Tangguh (971 mmscfd, 174,000 boepd), COPHI Grissik (827 mmscfd, 148,000 boepd), Pertamina EP (768 mmscfd, 137,000 boepd), PT Pertamina Hulu Mahakam (662 mmscf, 118,000 boepd), and ENI Muara Bakau (589 mmscfd, 105,000 boepd). (Public Relations of Ministry of Energy and Mineral Resources/ES)
Translated by: Estu Widyamurti
Edited by: M. Ersan Pamungkas