Oil, gas production, lifting exceed 2016 target

Petromindo

The country?s oil and gas production last year totaled 2,249 MBOEPD (thousand barrels of oil equivalent per day), or 14.16 percent higher than the 1,970 MBOEPD target.

Minister of Energy and Mineral Resources Ignasius Jonan said in a statement obtained Monday that oil production in 2016 averaged at 831 MBOPD (thousand barrels oil per day), while gas production averaged at 1,418 MBOEPD.

Meanwhile, oil and gas lifting during the year totaled 2,000 MBOEPD, slightly higher than the 1,970 MBOEPD target. Oil lifting was 820.3 MBOPD, slightly higher than the 822 MBOPD target set in the 2016 State Budget. Meanwhile, gas lifting was 1,181.5 MBOEPD, against the 1,150 MBOEPD target.

Jonan said the higher oil and gas output was achieved despite the generally weak oil price environment. The realized Indonesia Crude Price until end of 2016 was US$39.5 per barrel, compared to 2016 State Budget assumption of $40 per barrel.

Upstream oil and gas regulator SKK Migas said on December 23 that realized oil and gas production was derived from 67 working areas of oil and gas which have been in production. Among the 67 working areas, the largest contributors include Banyu Urip field of Cepu Block, Rokan block, Pertamina EP, Mahakam, and Offshore Northwest Java (ONWJ).

?Train B in Banyu Urip project has started production with full capacity at 185,000 bpd since January 2016,? said SKK Migas in a press release.

SKK Migas said there were five working areas as the largest contributors of gas production, namely Mahakam Block, Berau, Pertamina EP, Corridor, and Senoro-Toili.

Most of the oil and gas working areas are categorized as mature fields which have been seeing a natural decline. To arrest the declining trend, the contractors of the working areas had conducted three programs. The three programs are to drill new development wells, conduct work over, and well service.

Editing by Reiner Simanjuntak