Oil, gas investment projected to rise 7%

Petromindo

Upstream oil and gas investment in the country next year is targeted to increase by 7 percent to US$13 billion from the estimated $12.02 billion this year, according to upstream oil and gas authority SKK Migas.

SKK Migas Head of Public Relations Taslim Yunus said on Thursday that investment in production activities will account for about 75 percent of the projected total investment in 2017, followed by investment in development activities 10 percent, administration 8 percent, and exploration 7 percent.

Taslim explained that the regulator and oil and gas contractors have reached agreement on a number of work programs for next year including drilling programs in 223 new development wells, lower than 245 wells proposed by the contractors; drilling program in 25 exploitation wells, lower than 35 proposed by the contractors; and work over and maintenance programs, respectively covering 860 wells, and 57,512 wells.

Meanwhile, 3D seismic surveys next year are projected to cover a total of 2,795 km2, higher than 1,747 km2 proposed by the contractors.

Taslim said that realized upstream oil and gas investment as per November of this year reached $10.43 billion.

Elsewhere, Taslim said that oil lifting this year reaches 822,000 bopd, exceeding the 820,000 bopd target set in the 2016 State Budget. Gas lifting stands at 6,643 mmscfd, higher than the 6,438 mmscfd target.

He said that the higher lifting was among others contributed by significantly higher production at Banyu Urip field, in Cepu block. ?Train B at Banyu Urip field has started production at full-capacity of 185,000 bpd since January of this year,? he said. Other major contributors for the 2016 oil lifting are Rokan block, Pertamina EP, Mahakam, and ONWJ. Meanwhile, the five biggest contributors to the gas lifting are Mahakam block, Berau, Pertamina EP, Corridor, and Senoro-Toili. The oil and gas production came from 67 oil and gas working areas, part of which have been considered as mature fields with natural declining production rate.

In terms of exploration drilling activities from January until November 2016, contractors, 20 have been completed, of which seven wells discovered oil and gas, seven considered as dry wells, five have hydrocarbon indication, and one still being evaluated.

Editing by Reiner Simanjuntak