Oil output continues to decline following shutdowns

The country?s oil output continued to decline to as low as 790,000 bpd per Monday, compared to this year?s target of 825,000 bpd, due to unplanned and planned shutdown of production facilities by contractors, upstream authority SKK Migas said.

The regulatory body, however, remains optimistic that the production target could still be achieved as production at the Cepu block will increase later in the year, Kontan reported on Wednesday.

?There has been unplanned shutdown and planned shutdown of about 21,000 bpd,? SKK Migas Spokesman Elan Biantoro told the paper, adding that without the shutdowns production could reach about 813,000 bpd.

He said that oil and gas contractors which conducted the unplanned shutdown of production included PT Pertamina EP, Mobil Cepu Ltd, Pertamina Hulu Energi, and a number of joint operating bodies with Pertamina. Meanwhile, contractors which conducted planned shutdown were Petronas Carigali (pending completion of pipeline at the Kepodang field), and PetroChina Jabung (due to compressor overhaul).

Elan said that the Cepu block is expected to be able to increase production to 120,000 bpd in the second week of November, compared to the current 80,000 bpd. (*)