Pertamina gas production down 9%

State-owned oil and gas firm PT Pertamina saw gas production in the first quarter of this year declined by 9 percent to 1,582 mmscfd compared to 1,733 mmscfd in the corresponding period of last year, Bisnis Indonesia reported on Thursday.

The paper quoted Pertamina Upstream Director Syamsu Alam as saying that the first quarter result was also below the 1,732 mmscfd target.

Syamsu said that the company has been forced to lower output particularly in Jambi Merang Block and Natuna due to drop in demand.

He said that output is expected to increase next month after the Senoro joint operating body starts production.

On the contrary, oil output in the first quarter increased by 3 percent to 246,000 bpd from 239,000 bpd in the same quarter of last year, thanks to higher production from the Cepu block in Central Java.

Nevertheless, the first quarter oil production is still below 298,000 bpd target set in the 2015 revised state budget.

Pertamina has been forced to cut down production this year particularly due to the lingering drop in oil price. Capital expenditure for this year has also been slashed drastically by 42 percent to US$3.202 billion.

The company also cut down its net profit projection for this year by 66 percent to $1.16 billion from $3.45 billion last year. (*)