The country’s oil production has stayed far below
expectations in the first quarter of the year, raising concerns that the oil output target set in
the state budget cannot be achieved.
Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) secretary-general
Gde Pradnyana said on Tuesday that oil production was currently at
around 762,000 barrels of oil per day (bopd), far lower than an 825,000 bopd
target set in the state budget.
This should drive the government to look for additional production in the
coming months.
Additional output is
expected from the ramping up of oil production from the Banyu Urip field
of the Cepu block in Central Java, whose production is expected to gradually increase to 80,000 bopd
starting in April, a double increase from the current level of approximately
40,000 bopd.
Pradnyana said the block’s contractor
was currently awaiting approval from the Environment and Forestry
Ministry for an environmental impact analysis before it could start ramping up
production. The
environmental analysis is related to a temporary gas flaring from Banyu Urip’s
early oil expansion facility.
The Banyu Urip field is being
jointly developed by ExxonMobil Cepu Ltd. (MCL), a subsidiary of
ExxonMobil Corp., and Pertamina EP Cepu, a subsidiary of state-owned Pertamina.
Once it gets approval, Banyu
Urip will have to wait for the completion of its injection facility to be able to expand further
and reach peak production of 165,000 bopd. The production peak, which is
targeted to be achieved early in the fourth quarter of the year, will be a key contributor
to attaining national production of 825,000 bopd.
“Cepu is now in progress
although there is a delay in
the [development of] the gas injection. If it is at peak production in October, we can reach
825,000 bopd,” said IGN Wiratmaja, the Energy and Mineral Resources Ministry’s
acting director general for oil and gas, brushing aside concerns of missing the
national output target.
Wiratmaja, however, admitted that the current level of around 760,000 bopd was
sluggish as oil output was around the 790,000 bopd level at the end of last
year.
“Wells are in a natural
decline [of production]. Moreover, there are some contractors that are putting the
brakes on drilling,” he added.
Oil companies are
currently suffering from declining prices — which have halved from
levels seen early last year — that is particularly caused by rising supply over
the US shale oil boom. The
declining price has pushed companies to recalculate their projects.
Indonesian Petroleum Association (IPA) president Craig Stewart said that given
the March production level, reaching 825,000 bopd by year-end would be hard
work.
“It’s difficult to see that happening,” Stewart said. “We haven’t seen the full effect [of oil price slump]
now, but companies will be
cutting back in investment,” Stewart said. - See more at:
Keterangan :
1. Present perfect
2. Simple past tense
3. Present tense (passive)
4. Simple present tense
5. Past continous
6. Present continous tense (passive)
7. Present future
8. Modal + Present tense
9. Modal + Present continous
10. Present Continous
SUMBER
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