BPMIGAS banking on major producers to support oil-gas lifting

Upstream authority BPMIGAS said it is banking on major oil producers to support this year?s ambitious oil lifting target of 930,000 barrels per day (bpd) as set in the revised 2012 State Budget agreed by the government and the House of Representative recently.

In a media statement, BPMIGAS said apart from relying on major oil and gas projects that will begin production in second half of this year, the authority also relies on an increase of production in a number of existing fields to offset decline in other fields.

The biggest oil production will remain to come from two producers, namely Chevron (Rokan PSC) with production expected at 342,900 bpd and PT Pertamina EP at 135,000 bpd.

The other major existing producers are Chevron Indonesia Co with an expected production volume of 33,700 bpd, Mobil Cepu Ltd at 24,600 bpd, JOA PHE West Madura Offshore at 21,500 bpd, PT Medco E&P Indonesia at 17,000 bpd.

In addition, BPMIGAS also expects contribution from Petrochina International Ltd with expected production volume of 16,500 bpd, VICO at 16,300 bpd, BOB PT BSP Pertamina Hulu at 16,100 bpd, ConocoPhillips Grisik Ltd at 12,000 bpd, JOB Pertamina-PetroChina East Java at 10,600 bpd and other production sharing contractors (PSCs) at 86,400 bpd.

The oil lifting set in the revised State Budget appears to be ambitious as, as of today, oil production was still hovering below 900,000 bpd.

On Monday, BPMIGAS said it expects to get significant additional oil and gas production in second half of this year at a volume of 400 million standard cubic feet per day (mmscfd) of gas and 15,000 bpd as some major oil and gas projects will commence production in the period.

Among major projects that will begin production will include Terang, Sirasun, Batur (TSB) fields in Kangean Block, operated by Kangean Energi Indonesia (KEI), and new wells (KE-39, KE-40 and KE-54) in West Madura Offshore (WMO) Block, operated by Pertamina Hulu Energi with additional production of 13,600 barrels of oil per day beginning in third quarter.

It also expects additional production of 250 mmsfd of gas and 20,600 bpd from South Mahakam 1 and 2 in Block Mahakam, operated by Total E&P Indonesie beginning from third quarter 2012. The Bawal Sub Sea project of ConocoPhillips is also scheduled to begin production of 120 mmscfd of gas in the third quarter this year.

Editing by Roffie Kurniawan