Government sees lower oil production, higher price next year

By Bonha Ventura Sebayang

The government expects lower oil lifting next year at 800,000 bpd compared to 815,000 bpd as set in the 2017 revised state budget.

This was said by Minister of Energy and Mineral Resources Ignasius Jonan at a press conference on Wednesday unveiling the economic assumptions to be used by the government in the upcoming 2018 state budget draft.

?Oil lifting target for this year is 815,000 bpd. It is expected to decline in 2018 due to (aging) condition of oil fields. The use of EOR (enhanced oil recovery) technology is not alluring (to oil and gas contractors),? Jonan said, adding that the government will have to continue making crude import next year.

Meanwhile, gas lifting assumption for the 2018 state budget draft has been set at 1.2 million boepd, slightly lower than the 1.15 million boepd set in the revised 2017 state budget. The total oil and gas lifting target for next year is 2 million boepd.

The Indonesia Crude Price assumption in the 2018 state budget draft, however, has been set higher at US$48 per barrel, compared to $45 per barrel assumption in the 2017 revised state budget.

Editing by Reiner Simanjuntak