Government proposes lower 2017 oil lifting at 740,000-760,000 bpd
Wednesday, June 15 2016 - 01:53 AM WIB
This was said by Minister of Energy and Mineral Resources Sudirman Said during a meeting Tuesday with the House of Representatives Commission VII on energy discussing the assumptions for the 2017 State Budget as quoted in a statement issued by the ministry.
Meanwhile, gas lifting for next year is set at 1.05 million to 1.15 million boepd, about the same with the 1.15 boepd assumption used in the revised 2016 State Budget. As such, the total oil and gas lifting target for next year is set at 1.79 million to 1.91 million boepd.
Sudirman explained that there are a number of reasons for the lower lifting target primarily declining production rate exceeding 20 percent at aging fields, and delays by contractors in field development due to the weak oil price environment. ?The transition period of Mahakam Block more or less also affect (production), particularly for gas distribution profile in 2017,? he said.
Indonesia crude price (ICP) assumption in the proposed 2017 State Budget is set at US$35-40 per barrel amid optimism for a rise in oil price due among others to rising global demand particularly from OECD countries, China and India, and declining production trend in non-OPEC countries, and lower reserves in developed nations.
Meanwhile, the volume of subsidized fuel products is set at between 16.60 million kilo liters and 16.85 million kilo liters, comprising of kerosene 0.69 million kl, automotive diesel 16-16.16 million kl. The volume of subsidized 3-kg LPG is proposed at 7.096-7.235 million tons. ?Subsidy for automotive diesel is proposed at Rp 350-1,000 per liter,? Sudirman said.
Electricity subsidiary for next year is proposed at Rp 43.21-60.53 trillion.
During the Tuesday meeting, a number of assumptions in the revised 2016 State Budget have also been approved as follows.
? ICP at $45 per barrel
? Oil lifting at 820,000 bpd
? Gas lifting at 1.15 million boepd
? Volume of subsidized fuel and LPG products: kerosene at 0.69 million kl, automotive diesel at 16 million kl, and 3-kg LPG 6.602 million tons.
? Subsidy for automotive diesel at Rp 500 per liter
? Electricity subsidy Rp 38.39 trillion.
Editing by Reiner Simanjuntak