Oil output below target

The country?s oil production in January-March period averaged 764,000 bpd, or lower than the lifting target of 825,000 bpd set in the revised 2015 state budget, Bisnis Indonesia reported on Tuesday.

Head of Public Relations Unit of the upstream oil and gas authority SKK Migas, Rudianto Rimbono was quoted as saying that the first quarter output was also lower than last year?s average of 790,000 bpd.

The lower production would consequently force the country to increase import to meet domestic fuel demand amid weakening of the rupiah against the US dollar.

Rudianto, however, said that higher national oil production is expected soon when the Banyu Urip field at the Cepu block in Central Java will increase production to 70,000-75,000 bpd from the current 40,000-45,000 bpd. Production is projected to peak at 165,000 bpd in the third quarter, he added.

He said that the authority has yet to be able to ascertain if the state budget oil lifting target this year could be realized as the SKK Migas and the oil and gas production sharing contractors are still in talks over revision of their work and budget plans, expected to be concluded in May, a month earlier than the usual schedule of June due to the current drop in oil price. (*)