SKK Migas: Oil lifting slightly below target
Friday, December 15 2017 - 01:24 AM WIB
Petromindo|Dasir
Upstream oil and gas authority SKK Migas said that the country?s average oil lifting this year will be slightly lower than the target set in the 2017 state budget due among others to a number of unplanned shutdowns in production facilities.
SKK Migas Chief Amien Sunaryadi said on Thursday that in the period of January to December 12 average oil lifting stood at 802,199 bpd, or 98.43 percent of the full-year target of 815,000 bpd as set in state budget.
Gas lifting in the same period, however, reached 7,620 mmscfd, which exceeded this year?s target of 6,440 mmscfd.
?The oil lifting for 2017 is expected to be around 98 percent of the target set in the 2017 state budget,? he told reporters.
According to SKK Migas data, oil and condensate production as per December 12 totaled 786,504 bpd, and gas production at 7,824 mmscfd.
Meanwhile, the oil and gas lifting in the period of January to December 12 stood at 1.94 million boepd, or 97.96 percent of the 2017 state budget target of 1.96 million boepd.
Although lifting will be lower than target, the country?s oil and gas revenue this year is expected to exceed the state budget target of US$12.2 billion. ?The state revenue from oil and gas will be more than 100 percent,? Amien said.
He said that the lower oil lifting achievement was due to a number of factors including unplanned shutdowns in a number of oil and gas production facilities such as at West Madura Offshore block operated by PT PHE WMO.
A number of oil and gas blocks also suffered production decline, such as Sanga-Sanga block which saw a 25 percent output decline in third quarter of this year, the largest production decline according to SKK Migas data.
Meanwhile, investment in the upstream oil and gas sector this year is likely to only reach $10.5 billion-$11 billion, lower than the $12 billion target. As per end November, investment stood at $8 billion-$9 billion.
Amien said that investment next year is projected to reach $12 billion on the back of improving oil price, prompting oil and gas contractors to make new investment. (*)