Indonesia’s oil, gas lifting reaches 1.6 mln barrels per day by July 2021

Jakarta (Indonesia Window) – Until July 2021, Indonesia’s oil and gas lifting reached 1.638 million Barrels of Oil Equivalent Per Day (BOEPD), consisting of oil of 661,000 BOPD and natural gas of 977,000 BOEPD.

“The achievement is still 96 percent of the target (State Revenue and Expenditure Budget) of 1,712 BOEPD,” said Minister of Energy and Mineral Resources Arifin Tasrif in a meeting with the Indonesian House of Representatives on Thursday (Aug. 26).

The oil lifting of 661,000 BOPD is 94 percent of the 2021 State Budget target which was set at 705,000 thousand BOPD. Meanwhile, the natural gas lifting of 977,000 BOEPD is 97 percent of the 2021 national target of 1,007 million BOEPD.

To achieve those targets, the government continues to boost the increase in oil and gas production. “This is aimed at reaching productions of 1 million barrels of oil per day and 12 billion standard cubic feet of gas per day (BSCFD) by 2030,” said Arifin.

To achieve that goal, the government stipulates that the volume of gas which could be sold at market prices for all schemes should be above the take or pay standard and Daily Contract Quantity (DCQ).

“The government is also discussing several additional policies in order to improve the economy of oil and gas production,” said Arifin.

The policies are a tax holiday for income tax in all oil and gas working areas, adjustment of costs for the use of the Badak LNG Plant by 0.22 U.S. dollars per MMBTU (Metric Million British Thermal Unit), and support from the upstream oil and gas supporting industries (steel, service rigs, etc.) and services.

In the 2022 State Revenue and Expenditure Budget Plan, the government has set a target for oil and gas lifting of 1.739 million BOEPD, consisting of 703,000 thousand BOPD for oil and 1.036 million for natural gas. “This proposal takes into account the current global oil situation,” Arifin said.

Reporting by Indonesia Window