Upstream sector generates $31.3 in state revenue
Monday, December 30 2013 - 12:43 PM WIB
?Several obstacles, including subsurface obstacles and the fact that buyers absorbed gas less their commitment have hampered the efforts to reach the production target,, which as a result impact the realization of state revenue,? Widjonarko said in the year-end press conference.
The 2013 Revised State Budget targets oil lifting to reach 840,000 barrels per day (bpd) and gas lifting to reach 7,175 million British thermal unit per day (mmbtud). Until the end of this year, the lifting is projected to reach 826,000 bopd or 98 percent of the target for oil and 6,981 mmbutd or 97 percent of the target for gas.
Subsurface obstacles such as declining production rate at mature wells, particularly in Rokan and Mahakam blocks, resulted in the loss of 325,000 bopd of potential production this year. The gas production is less than targeted this year because the less-than-expected absorption of gas by buyers. A total of 15 gas buyer offtook gas less their commitment due to the lack of facilities and network. As a result, the country has lost 420 mmscfd in gas potential production, which is equal to 75,000 bopd.
Widjonarko said SKK Migas and PSC holders have taken several measures to reach the production target of this year, including drilling development wells, carrying out workover, well service. These efforts managed to bring additional 93,900 bopd. Pd Meanwhile, maintenance efforts to reduce unplanned shutdown cases contributed 8,600 bopd.
With regards exploration, PSC holders in their revised Work Program & Budget (WP&B) targets to drill 1,107 development wells, carry out workover at 953 wells and well service at 29,642 wells. In reality, a total of 980 development wells have been drilled this year, while workover and well service activities have been carried at 778 wells and 26,749 wells respectively. Meanwhile, a total of 121 exploration wells are targeted to be drilled this year, but only 91 wells have finally been drilled due to several obstacles related to land acquisition, procurement, rig schedule, site preparations and subsurface evaluation.
This year, PSC holders target to acquire 2D seismic data on 15,647 km and 3D seismic data on 22,576 square kilometers. In reality, the 2D seismic surveys this year covered 11,949 km or 76 percent of the target, while the 3D surveys covered 14,177 sq km or 63 percent of the target.
Despite all the problems faced in the upstream sector this year, investment in the sector is on the rise. Until the end of 2013, the investment is projected to reach $19.342 billion, up 17 percent compared to last year?s investment which stood at $16.543 billion.
?Investment has been rising significantly over the past three years, ? Widjonarko said.
Editing by Johannes Simbolon