Eleven oil, gas contractors to suffer production decline next year
Tuesday, September 6 2016 - 02:54 AM WIB
Eleven oil and gas contractors are expected to suffer lower production next year, which will cause the country?s oil lifting in 2017 to only reach 780,000 bpd, down 5 percent from the estimated 820,000 bpd for this year.
Head of oil and gas upstream authority SKK Migas Amien Sunaryadi said during a hearing with the House of Representatives Commission VII on energy on Monday that there are various reasons for the expected production decline including aging fields, lingering weak oil price environment, and looming contract expiry, which prompted operators of certain blocks to ramp down production activities.
PT Chevron Pacific Indonesia is expected to suffer the largest production decline from its Rokan block, whose oil output is projected to fall to 228,900 bpd next year from the estimated 250,900 bpd for this year. The two main reasons are aging fields and delay in the development of NDD Area 14.
PT Pertamina EP is also expected to see production decline next year to 85,000 bpd from the estimated 87,700 bpd for this year due to natural production decline in all of its fields. Meanwhile, ConocoPhillips will see its production at the Block South Natuna Sea B to fall to 17,400 bpd next year from 19,300 bpd, while at Ketapang block to 15,200 bpd from 16,900 bpd.
Elsewhere, SKK Migas said that natural production decline will be seen at BOB Pertamina-Bumi Siak Pusako in CPP block from 11,500 bpd to 10,500 bpd, and PHE WMO West Madura from 9,200 bpd to 8,100 bpd. Medco E&P Rimau will see production decline at Rimau block from 9,000 bpd to 5,500 bpd. Production by JOB Pertamina-Medco Tomori Sulawesi at Senoro Toili block will fall from 7,200 bpd to 6,700 bpd.
Total E&P Indonesie?s production at the Mahakam block will decline next year to 52,800 bpd from 64,300 bpd estimated for this year as the company ramps down production activity because its contract is set to expire at the end of 2017. A similar condition is also expected to be seen in Sanga Sanga block, operated by VICO, where production will fall from 12,800 bpd to 8,200 bpd.
SKK Migas, however, said that several contractors are expected to enjoy higher production next year such as Mobil Cepu Ltd at Cepu block from 163,900 bpd to 165,000 bpd.
Other contracts which are set to deliver higher production includes CNOOC SES Ltd at Southeast Sumatra block, whose oil output is projected to increase from 31,600 bpd to 32,400 bpd due to extra work over production and well maintenance.
Oil lifting at East Kalimantan block, operated by Chevron Indonesia Company, is also projected to increase from 15,200 bpd to 17,700 bpd due to production optimization program. Petrochina Internasional Jabung Ltd will also enjoy higher oil production next year from the Jabung block at 14,400 bpd from 13,500 bpd estimated for this year.
Meanwhile, Bisnis Indonesia reported on Tuesday that according to SKK Migas data, only four oil and gas fields will start production next year with combined relatively small output of 6,180 bpd of oil, and 316 mmscfd of gas. The fields are Madura BD operated by Husky Oil (5,980 bpd of oil and 100 mmscfd of gas), Cikarang Tengah Pacing operated by Pertamina EP (14 mmscfd of gas), Jangkrik field (200 bpd of oil and 142 mmscfd of gas), and Jangkrik North East operated by ENI Muara Bakau (60 mmscfd of gas).
Editing by Reiner Simanjuntak