New Fields Expected to Turn Out 27,000 Barrels of Oil

JAKARTA

The new upstream oil and gas regulator (SKK Migas) said it hope to have additional production of 27,000 barrels of crude oil per day from 22 fields in 2013.

Head of SKK Migas Rudi Rubiandini told the lawmakers, 22 new oil fields are expected to start turning out crude oil in 2013.

The 22 fields include 11 new fields which are set to come on stream this year including Anoa, Duri Area 13, Gundih, Letang Tengah Rawa, Pondok Makmur Phase-1, Ruby, KE-388, KE-39, KE-40, KE-54,  and  South Mahakam.

Eight other new fields – Tonga, Project Jetty, Ridho-1, Rindu Area 7, Sumur Tiung Biru-1St, Budi, Duri Area 12, and Duri Area 8 Rindu, were originally set to start producing last year but operation has been delayed until this year.

The 19 new oil fields are expected to produce 25,000 barrels of crude oil per day.

Additional production is also expected from two enhance oil recovery (EOR) project in the old oil fields of Rantau  and Talang Jimar  with output estimated at 700 barrels per day and  from acceleration project of Banyu Urip to turn out 1,250 barrels per day.

South Mahakam operated by Total E&P in East Kalimantan will be the largest producer among the 22 fields to contribute around 13,000 barrels per day to the additional production.

The second largest producer is  Duri Area 8 Rindu to contribute 2,370 barrels, followed by Banyu Urip 1,250 barrels, KE-388 1,500 barrels, KE-54 1,380 barrels, KE-39 1,130 barrels,  and KE-40 1,000 barrels.

Rudi said the existing producing fields are expected to turn out only an aggregate of  803,000 barrels per day with assumption that productivity falls by 5 percent.

However, with the additional production of 27,000 barrels per day, the total production could reach around 830,000 barrels per day, he said.

Rudi said with oil production at 830,000 barrels  and gas production at 6,939 MMSCFD  or equivalent to 1.24 million barrels of oil per day the country will produce around 2.08 million barrels of oil equivalent per day in 2013.

He said oil and gas revenues are expected to reach around US$28.5 billion with operating cost (cost recovery) at US$17 billion.

The oil and gas revenues in 2013 was calculated on assumption that the price of Indonesian crude at US$103 per barrel, gas at US$9.35  per MMBTU.

The estimate is below  target  set in the 2013 state budget in which oil production target is set at 900,000 barrels  and gas production target 7,890 MMSCFD  with revenues at US$31.7 billion and cost recovery at US$15 billion.

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