Oil and gas production exceeds target during H1

Indonesian state income from oil and gas during the first half of this year reached US$18.7 billion, exceeding the set target of US$18.4 billion, while the oil lifting averaged at 831,118 barrel per day, which is 99 percent of the 840,000 barrels target set in the 2013 state budget, the highest achievement level over the last three years.

Upstream authority SKK Migas Chairman Rudi Rubiandini said that over the last few years the realization of oil lifting was always below 99 percent. ?This is the first time we managed to achieve the highest level,? he said in Jakarta on Wednesday.

?This achievement is the result of all the hard work of PSC contractors, SKK Migas, the ministry of energy and mineral resources, the local governments, and all other stakeholders, including the media. We would like to thank all stakeholders for this,? Rudi said.

He admitted that there are still many PSC contractors who could not yet meet their production targets as set in the state budget. But there are also many contractors that managed to achieve and even surpass their set targets this year.

According to him, seven PSC contractors managed to surpass their targets as set in the state budget 2013. They are ConocoPhillips Indonesia Ltd, Vico Indonesia, Medco E&P Indonesia (S&C Sumatera), PHE ONWJ, Chevron Pacific Indonesia, Medco E&P Indonesia (Rimau), and ConocoPhillips (Grissik) Ltd.

ConocoPhillips Indonesia Ltd managed to realize production of oil at an average of 34,867 barrels per day, up from the target of 32.890 barrels set in the state budget 2013. Vico Indonesia managed to reach oil production at 13,740 barrels per day, higher than the target of 13,010 barrels per day. Medco E&P Indonesia (S&C Sumatra) managed to produce 6,841 barrels per day, higher than the target of 6,630 barrels per day. PHE ONWJ realized 38,996 barrels per day, higher than the target of 38,080 barrels per day.

Chevron Pacific Indonesia managed to produce at 323,014 barrels of oil per day of the target of 319,430 barrels per day. Medco E&P Indonesia ( Rimau) produced at 14,086 barrels per day of the target of 14,060 barrels per day. ConocoPhillips (Grissik) Ltd realized 9,435 barrels per day of the target of 9,430 barrels per day.

Rudi asked other contractors who could not yet meet their target to improve their performance. ?I ask you to increase your production achievement. What we?re doing is for the sake of the state. Let?s cooperate and collaborate to realize our national target,? he said.

But he admitted that there are non-technical problems, such as tough licensing process at the local administrations, oil theft, and people protests. ?Those problems are still hampering the production of oil and gas here. The income from oil and gas benefits not only certain people, but all Indonesians. That?s why all Indonesians should support it, particularly the local administrations,? he said.

Editing by Benget Besalicto ST