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15 September 2021 (closed)
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Indonesia's upstream oil & gas regulator SKK Migas said the nation's crude oil production in the first quarter of 2016 reached the average of 835,234 barrels per day (bpd), slightly above the target of 830,000 bpd that was set in the 2016 State Budget. This is positive news as it is rare for Indonesia to achieve its crude oil output target. In Q1-2016 the target was met due to the combination of a realistic oil production target and long-awaited crude production growth at Exxon Mobil Corp's Banyu Urip field (part of the Cepu Block in East Java).
SKK Migas spokesperson Elan Biantoro said Indonesia's crude oil output has been on the rise in the first quarter of 2016. In the month March the daily average stood at 847,291 per barrel, significantly up from the average of 786,000 bpd in full-year 2015. Higher crude oil output comes (primarily) on the back of the Banyu Urip field having reached its peak production rate (around 165,000 bpd). Output at this field, the largest existing oil field in Indonesia (estimated to contain about 450 million barrels of oil), has been soaring between 2014 and the first quarter of 2016 from an average of 40,000 bpd in 2014 to 130,000 bpd in December 2015 and then touching its peak production rate of 165,000 bpd in early March 2016. Earlier, Indonesian authorities and Exxon stated that the Banyu Urip field will account for approximately 20 percent of Indonesia's full-year 2016 total oil production target.
Rising crude oil output at the Banyu Urip field is particularly responsible for Indonesia having achieved its oil lifting target in Q1-2016. Other oil & gas companies have reportedly cut back on capital expenditure this year (hence curtailing activities related to exploration and production) amid the world's low crude oil prices (that touched 12-year lows at around USD $27 per barrel in January 2016). Today (08/04), West Texas Intermediate (WTI) futures rose 3.5 percent to USD $38.57 per barrel, while Brent crude futures traded 3.14 percent higher at USD $40.65 per barrel. Although oil prices are recovering they remain far below the 'normal' range of USD $80 - $100 per barrel. However, also the Bukit Tua field (part of the Ketapang block in East Java, operated by Petronas Carigali) and the North Duri Development Area 13 in Sumatra (operated by Chevron Pacific Indonesia) recorded higher output in the first quarter of 2016. The Bukit Tua field reached its peak production rate of 20,000 bpd, while the North Duri Development Area 13 entered the 'pilot project' stage (the peak production of this field is estimated at 17,000 bpd).
Crude Oil Price:
The Banyu Urip field in East Java province is operated by Exxon Mobil and Indonesian state-owned energy company Pertamina. The project experienced several setbacks - including technical difficulties and worker disputes at the production site - that caused a delay in reaching its peak production rate.
Read more: Overview of Indonesia's Oil Industry
Meanwhile, Biantoro also informed that Indonesia's gas production at around 8,290 million standard cubic feet per day (mmscfd) exceeded the target set by the government.
Indonesia Crude Oil Production:
¹ oil production in Q1-2016 only
Source: Investor Daily
Production Target per Oil & Gas Contractor in 2016:
|Oil & Gas Contractor
||2016 State Budget|
|Chevron Pacific Indonesia||Rokan||243,000|
|Mobil Cepu Ltd||Cepu||168,430|
|Total E&P Indonesia||Mahakam||55,720|
|PHE ONWJ Ltd||ONWJ||37,300|
|CNOOC S.E.S Ltd||S.E. Sumatra||31,650|
|ConocoPhillips Indonesia Inc Ltd||South Natuna Sea Block B||19,280|
|Petronas Carigali Ketapang||Ketapang||18,030|
|Chevron Indonesia Company||East Kalimantan||14,470|
|PetroChina International Jabung Ltd||Jabung||13,970|
|Virginia Indonesia Company (VICO)||Sanga-Sanga||12,110|
|BOB - BSP Pertamina Hulu||CPP||11,450|
|PHE WMO||West Madura||10,030|
|Sub Total 13 Largest Contractors||733,950|
|Remaining 70 contractors||93,940|
|Total Oil Lifting Indonesia||±830,000|
Source: Bisnis Indonesia
Indonesia to Offer Oil & Gas Blocks to Investors in May 2016
Wiratmaya Puja, Oil & Gas Director General at Indonesia's Energy and Mineral Resources Ministry, stated on Friday (08/04) that Indonesia will offer 11 conventional and 3 unconventional oil & gas blocks to investors through regular tenders and direct appointment starting in May 2016.
The conventional blocks are located onshore Sumatra, Papua, Sulawesi and Kalimantan as well as offshore Kalimantan. Puja added that the unconventional blocks comprise one shale gas and two coalbed methane blocks. When available, Indonesia Investments will publish more detailed information about these tenders.