Crude production drops on bad weather, other factors

The country?s oil lifting as of February 12 of this year fell to 790,300 bpd, according to Acting Chairman of the upstream authority SKK Migas, J. Widjonarko.

The production figure is lower than the normal average of around 800,000 bpd, and much lower than the 870,000 bpd target set in the 2014 state budget.

Widjonarko attributed the lower crude production to the bad weather condition during the past two months which disrupted production activities in a number of fields; and rising number of aging wells.

He was quoted as saying by reports Tuesday that the delayed in the production of the Cepu block has also contributed to the country?s lower oil lifting. He said that the Cepu field was expected to contribute about 165,000 bpd.

With the lower production, Widjonarko said that SKK Migas has proposed to the government to revise downward the oil lifting target in the 2014 state budget to 804,000 bpd.

Elsewhere, Widjonarko said that gas production was lower than target, which averaged 8,196 mmscfd, compared to the 8,303 mmscfd target.

He is optimistic, however, that the oil and gas revenue target of US$30.6 billion could be achieved.

Meanwhile, despite the lower production, the cost recovery budget for this year is expected to rise to $19.1 billion, higher than the $15 billion allocated in the 2014 state budget. (*)