Indonesia Falls Short in Oil and Gas Production

By MarEx 2014-02-19 19:38:00

Indonesia’s Upstream Oil and Gas Regulator (SKK Migas) has announced that the country’s oil production in 2013 averaged 825,000 barrels per day, falling short or 98.3 per cent of the target of 840,000 barrels set in the budget. 

Production of gas was reached 98.4 per cent of the target. State revenues from the oil and gas sector were US$31.4 billion (99 per cent of the target).

Extreme climate was cited as a contributing factor as almost 19,000 barrels of crude oil was lost when the mooring hawser of floating storage and offloading of Cinta Mas broke off Tuban, East Java. In addition, there were more than 2,000 cases of stealing and illegal tapping and delays in the number of oil block coming on stream.

The country continues to push ahead and SKK Migas has awarded the engineering, procurement, construction, installation (EPCI) contract for two gas fields in the Muara Bakau Block. Both fields are expected to start producing in early 2017 with peak production of 450 million cubic feet of gas per day for six years. This project is a first for deepwater gas production with water depths greater than 500m.