Based on data from the upstream oil & gas regulator of Indonesia, SKK Migas, these five aforementioned oil companies produced a total of 567,623 barrels of oil per day (bpd) in the first three quarters of 2018. Meanwhile, total national oil production in this period was recorded at 773,923 bpd, below the full-year target of 800,000 bpd that was set by the Indonesian government in the 2018 State Budget.

The lower-than-targeted production realization was attributed to technical issues. Wisnu Prabawa Taher, the Program and Communications Division Head at SKK Migas, said Pertamina Hulu Energi Offshore North West Java and Chevron Pacific had to cope with technical difficulties. He added that, contrary to initial estimates, Medco Natuna's oil & gas production is still not on track.

Thus, Chevron Pacific Indonesia, Pertamina EP, and Pertamina Hulu Mahakam have so far under-performed as their oil production realization fell short of the target. Only two of the big five - namely ExxonMobil Cepu Limited and CNOOC - produced more oil than targeted.

Recently the Indonesian government awarded various expired or expiring oil fields to state-owned energy company Pertamina. The making of these decisions seems particularly based on nationalist sentiments. However, there is concern that Pertamina will come under great financial pressure, while oil production at these fields is feared to decline as Pertamina does not have the same level of expertise as the big foreign oil & gas companies.

Oil Production in Indonesia up to Q3-2018:

Contractor Production
State Budget
Target (bpd)
Chevron Pacific Indonesia    210,582     213,551
ExxonMobil Cepu Limited    207,936     205,000
Pertamina EP     73,618      85,869
Pertamina Hulu Mahakam     44,346      48,271
CNOOC     31,141      30,000
Total National Production    773,923     800,000

Source: SKK Migas

Meanwhile, the five aforementioned companies - oil and gas cooperation contract holders (KKKS) - also contribute 66.50 percent to Indonesia's total gas production.

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