Oil lifting target cut down to 825,000 bpd

The government has finally agreed to cut down the oil lifting target in the revised 2015 state budget to 825,000 bpd as an earlier proposal of 849,000 bpd was seen unrealistic and difficult to achieve considering the current drop in oil price.

The new oil lifting target for this year was agreed at a meeting between the Ministry of Energy and Mineral Resources and the House of Representatives Commission VII on energy and mining on Wednesday.

Minister of Energy and Mineral Resources Sudirman Said stated in a statement that the earlier proposal of 849,000 bpd was made based production plans made by oil contractors in the country in December of 2014. The oil lifting was primarily expected to come from a number of main contractors among others Chevron Pacific Indonesia-Rokan (280,000 bpd), PT Pertamina EP (128,390 bpd), and Total E&P Indonesie (62,679 bpd).

?(But) Global oil price turned out to fall deeper, and many of the oil production sharing contractors changed their work plans ? Which affect the lifting target,? Sudirman said in the statement.

Based on the new calculations, Sudirman added, the government proposed a new target of between 810,000-825,000 bpd, which finally decided at the House meeting at 825,000 bpd.

?I prefer to set realistic (target) that can be achieved, rather than setting a sky high target, but can?t be achieved,? Sudirman said.

Editing by Reiner Simanjuntak