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:

Year Production
2016 835,000 bpd¹
2015 786,000 bpd
2014 794,000 bpd
2013 826,000 bpd
2012 860,000 bpd
2011 900,000 bpd
2010 945,000 bpd
2009 949,000 bpd

¹ oil production in Q1-2016 only
Source: Investor Daily

Production Target per Oil & Gas Contractor in 2016:

Oil & Gas Contractor
Working Area
2016 State Budget
Chevron Pacific Indonesia Rokan         243,000
Mobil Cepu Ltd Cepu         168,430
Pertamina EP Indonesia          98,510
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.