Oil production on the rise in September, still below target

The national oil production averages 805,000 bpd this month (September), higher than 776,500 bpd in August, still lower than the revised state budget target of 825,000 bpd, upstream authority SKK Migas announced on Tuesday.

This year to date, the production averages 783,000 bpd or 95 percent of the revised state budget target, SKK Migas? Secretary Budi Agustyono said during a gathering in Yogyakarta on Tuesday.

?As for gas, the production is relatively stagnant at 8,000 mmscfd,? he said, adding in total, the oil and gas production averages 2.21 million barrels of oil equivalent per day this year to date.

He said the production will continue to increase to the end of the year, the reason that he is optimistic that the oil and gas lifting target is achievable.

As of Sept. 4, 2015, the state?s realized revenue from oil and gas was recorded at US$10.03 billion, which is 67 percent of the target of $14.99 billion.

He said it is not easy to achieve the oil and gas targets amid industry slowdown in which oil and gas companies are forced to implement efficiency measures. The efficiency measures include renegotiation on sub-contractor fees. ?For examples, Total E&P Indonesie and PHE WMO have been able to renegotiate their rig fees,? he said.

Editing by Johannes Simbolon