2017 state budget assumes oil price at $45, oil lifting at 780,000 bpd

The draft 2017 State Budget officially submitted by President Joko Widodo during the House of Representatives? plenary session on Tuesday assumes the Indonesian oil price to stand at $45 per barrel oil lifting at 780,000 barrels per day (bpd) next year.

He noted the oil price is expected to slightly increase thanks to growing demand as a result of a projected global economic discovery.

Gas lifting target is set at 1.15 million barrels of oil equivalent per day (boepd). Combined, the oil and gas lifting target for next year is 1.93 million boepd.

The country?s economic growth is projected at 5.3 percent, inflation at 4 percent, while the currency value at Rp 13,000 per dollar.

During the deliberations on state budget?s assumptions several months ago, SKK Migas? Vice Chairman Zikrullah told the Commission VII that 800,000 bpd oil lifting is impossible to reach next year because many projects have been postponed this year. ?There are many well drilling programs that have been put on hold, while some exploration well programs have also been delayed,? he said.

There isn?t any program planned for 2017 that will be able to significantly increase production. ?Thus, the (oil lifting) target of 800,000 bpd is difficult to achieve,? he said.

Differently, Zikrullah said, the gas lifting target of 1,100-1,200 thousand boepd is achievable particularly due to the Muara Bakau PSC gas project operated by Italian firm Eni, which is scheduled to come onstream in the second quarter of 2017.

Editing by Johannes Simbolon