WP&B set lower oil and gas production targets than state budget
Saturday, December 19 2015 - 04:43 AM WIB
Upstream authority SKK Migas said that the 2016 Work Program & Budget (WP&B) that has been agreed upon by the agency and contractors target oil production at 826,000 bopd and gas production at 6,256 mmscfd.
SKK Migas' Spokesperson Elan Biantoro told Petromindo.com that for next year, the state budget targets oil production at 830,000 bopd and gas production at 6,470 mmscfd.
"The national oil production is estimated at 790,000 bopd this year, slightly higher than 789,000 bopd last year, still lower the state budget target of 825,000 bopd. Gas production is projected to reach 6,570 mmscfd this year, lower than the state budget target of 6,835 mmscfd," Elan said.
In addition, he said, the 2016 state budget targets the government's take at $11.65 billion and cost recovery at $11.09 billion. The 2016 WP&B however sets a lower a target for the government's take, that is $10.77 billion, and much higher target for cost recovery, that is $14.92 billion.
"This is the consequence of the falling oil price," Elan said, adding the Indonesian Crude Price (ICP) is projected at $50 per barrel next year.
Meanwhile, SKK Migas? Chairman Amin Sunaryadi projected the global oil price will remain under pressure next year. As a consequence, the costs of service in the oil and gas sector will fall. This should be a good opportunity for investment in exploration.
He said the 2016 WP&B targets 476 development wells and 32 exploration wells in exploitation blocks and 151 exploration wells in exploration blocks to be drilled next year.
Editing by Johannes Simbolon