Indonesia likely to produce 904000 b/d of oil in 2012; below target

08-Jun-2012 Intellasia | Platts | 7:01 AM Print This Post

Indonesia will likely produce 904,000 b/d of crude and condensate in 2012, below the country’s already lowered target of 930,000 b/d, due to a natural decline at aging fields and some unexpected technical problems, a senior official at upstream regulator BPMigas told Platts Wednesday.

“The production will be lower from the government’s target. Although the average production over January-May was 880,600 b/d, we estimate that the total production this year could reach 904,000 b/d on average,” said Rudi Rubiandini, operations deputy chief at BPMigas.

But he added that the country’s gas production this year is expected to meet the target of 7.655 Bcf/d.

According to Rubiandini, Indonesia’s crude and condensate output was 881,600 b/d in May, 869,800 b/d in April, 882,537 b/d in March, 884,540 b/d in February and 884,400 b/d in January.

In April, the Indonesian government revised down Indonesia’s crude and condensate output target for 2012 to 930,000 b/d, compared with an earlier target of 950,000 b/d. The gas production target was unchanged at 7.655 Bcf/d.

BPMigas Chair R. Priyono said last week that Chevron Pacific Indonesia, the country’s biggest oil producer, has still not been able to return to normal production levels due to the impact of a leak at Transportasi Gas Indonesia’s pipeline in Central Sumatra in 2010, adding that the company was still facing a production shortfall of 20,000 b/d.

Priyono also said the West Madura Offshore block was currently producing 10,000 b/d less than expected due to a platform accident in 2010 and also due to an unresolved issue about operatorship, currently with state-owned Pertamina, which has caused a delay in investment.

He added that China’s CNOOC has also lost production of 4,000 b/d from the South East Sumatra block due to a fire at its floating, storage and offloading vessel in September last year. Meanwhile, Total E&P Indonesie has been facing lower production at its Mahakam block in East Kalimantan due to declining reserves, Priyono said.

But BPMigas vice Chair Hardiono said Tuesday that some oil companies operating in Indonesia will hold the first three enhanced oil recovery projects this year to boost their production, including Chevron at its Minas field in Central Sumatra.

He added that BPMigas was optimistic about increasing the Indonesia’s oil and gas production over the next five years as there were an estimated 50 hydrocarbon structures in the country that have yet to be explored. These structures contain potential reserves of 277 million barrels of oil and 5.5 Tcf of natural gas, and are located in 24 working areas across Indonesia, Hardiono said.

Indonesia has seen its crude and condensate output fall over the years because of a natural decline at aging fields. The country missed its 2011 crude and condensate production target of 945,000 b/d, pumping only 902,053 b/d due to natural decline and unexpected shutdowns at some blocks.


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