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SKK Migas Mid-Year Review (1) — Indonesia oil and gas lifting in H1 still below target

Donggi Senoro LNG plant [Image: DSLNG}
Donggi Senoro LNG plant [Image: DSLNG}
JAKARTA (rambuenergy.com) – Indonesia oil and gas lifting in the six months to June is below target, partly due to unplanned shut-down and delayed procurement process. The Special Task Force for Upstream Oil and Gas (SKK Migas) revealed that oil lifting in the period reached 763,600 barrels per day, representing 92.6 percent of the revised 2015 State Budget of 825,000 barrels per day.

Natural gas lifting reached 6,587 million standard cubic feet per day (MMSCFD) or 96.4 percent of the revised State Budget of 7,079 MMSCFD. In total, oil and gas lifting reached 1.94 million barrels of oil equivalent per day, or 94.8 percent of the Revised 2015 State Budget of 2,045 MMSCFD.

Chairman of SKK Migas Amien Sunaryadi said during a media briefing on late Wednesday that some production sharing contractors (PSCs) recorded higher-than-target oil and gas production, while some others recorded lower-than-target production. SKK Migas, he said, will continue to work closely with the PSCs to find solutions on how to meet the lifting target and assure that the PSCs meet their Work Plan & Budget (WP&B) set earlier.

He added SKK Migas has also asked the PSCs to make revision as earlier as possible. Usually, PSCs made revision in mid year (around July-August), however, given the low oil price, PSCs have made revision in April. Most of them have submitted their yearly production target.

SKK Migas now pins hope on the increasing production of Banyuurip field within the Cepu Block in the second half of this year.

As of June, the average production of Banyuurip field has increased to 83,534 barrels of oil per day (bpd), up from an average of 40,179 bpd in January this year. SKK Migas, Sunaryadi said, expects production will continue to increase to 149,000 bpd in August this year and further increase to reach its peak production level of 205,000 bpd beginning from December this year.

“As for full year, we project that the average oil will reach 826,400 barrels per day, or slightly above (State Budget) target,” he said.

In the first six months of the year, revenues from oil and gas sector reached US$7 billion, or equals to Rp92.5 trillion, nearly half of the full year target set in the revised State Budget of US$14.99 billion or equals to Rp198 trillion.

“We are optimistic that the full year (revenues) target will be reached,” Sunaryadi added.

The SKK Migas head was encouraged by the level of local content in the oil and gas industry. In the six months to June, the local content level used in various oil and gas projects have reached 67.71 percent. Out of total expenditures of US$2.24 billion, US$1.42 billion were spent to procurement local products and services. The local content for service is much higher at 72.75 percent, valued at US$944 million, out of total services value of US$1.39 billion. The local content level for products reached 59.61 percent, valued at US$482 million, out of total value of US$856 million.

Following is the list of Production Sharing Contractors that meet the target as well as those whose production were below target:

PSCs that meet the oil production target:

  Oil Gas
 1. Chevron Pacific Indonesia Vico Indonesia
 2. Total E&P Indonesie Conoco Phillips Indonesia Ltd
 3. Vico Indonsia Pertamina EP
 4. ConocoPhillips Indonesia Ltd JOB Pertamina-Medco Tomori Sulawesi Ltd
 5. BOB Bumi Siak Pusako Pearl Oil (Sebuku) Ltd
 6. Medco E&P Indonesia (Rimau) Total E&P Indonesie
 7. Chevron Makassar Ltd ExxonMobil Oil Indonesia Inc.
 8. Medco E&P Indonesia Chevron Indonesia Co.
 9. CNOOC SES Ltd Premier Oil Natuna Sea B.V.
 10. PHE West Madura Offshore Medco E&P Indonesia (S&C Sumatra)

Source: SKK Migas

PSCs that failed to meet the gas production target:

Oil Gas
1. ExxonMobil Cepu ltd JOB Pertamina-Medco Tomori Sulawesi Ltd
 2. Petronas Cargiali Ketapang II BP Berau
 3. Pertamina EP Petronas Carigali (Muriah Ltd)
 4. JOB Pertamina-Medco Tomori Sulawesi Ltd ExxonMobil Cepu Ltd
 5. PT Odira Energy Karang Agung Kangean Energi Indonesia Ltd
 6. JOB Pertamina-Petrochina Salawati Energy Equity Epic (Sengkang) Pty Ltd
 7. ExxonMobil Oil Indonesia Inc. JOB Pertamina-Talisman (Jambi Merang)
8. Sele Raya Petronas Carigali Ketapang II
 9. Petroselat Ltd ExxonMobil Oil Indonesia Inc.
 10. BP Berau Petroselat Ltd

Source: SKK Migas

(*)

By Roffie Kurniawan (email: roffie.kurniawan@rambuenergy.com)

 

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