Government sets higher oil lifting target of 830,000 bpd

Despite the current oil price drop, the government and the House of Representatives Commission VII overseeing energy and mining sectors have agreed to set a higher oil lifting target of 830,000 barrels per day in the proposed 2016 state budget, compared to 825,000 bpd in this year?s budget.

The Directorate General of Oil and Gas said in a statement Thursday that the agreement was reached during deliberation of the economic assumptions to be used in the 2016 state budget.

Meanwhile, gas lifting target is set at 6,470 mmscfd, or 1,135,000 barrel oil equivalent per day, slightly lower than the 1,221,000 boepd target set in the 2015 state budget.

The government is confident to be able to meet the lifting targets. Head of the upstream oil and gas authority SKK Migas Amien Sunaryadi said that the oil lifting target was based on preliminary discussions with 42 oil and gas production sharing contractors, the final results of which expected to come out in November.

Meanwhile, the Commission VII recommended the government to review the proposed Indonesia Crude Price assumption of US$60 per barrel in light of the latest drop in oil price.

Editing by Reiner Simanjuntak