Indonesia’s 2022 oil lifting below target, but investment rising

  • 2023 oil hike target is 660,000 bpd
  • 2023 LNG production seen at 204-206 cargoes
  • Upstream investment to grow 13% YoY in 2022, targeting $15.5 billion in 2023
  • IDD stake, operator contract expected in Q1

JAKARTA (Reuters) – Indonesia’s oil and gas gains fell short of targets last year due to unplanned shutdowns and block maturity, but investment in exploration and production is poised to take off, the country said. SKK Migas, the company’s upstream regulator, said Wednesday.

SKK Migas chief Dwi Soetjipto said at a briefing that Indonesia’s crude oil lifted last year was 612,300 barrels per day (bpd) and gas lifted 5,347 million standard cubic feet per day (mmscfd). said. Both fell short of his target of 703,000 bpd and he of 5,800 mmscfd respectively.

In 2023, oil pumping will target 660,000 bpd and gas pumping will target 6,160 mmscfd. Liquefied natural gas production has increased from 196 cargoes last year to 204 cargoes this year, he said.

Two delayed projects from last year, including BP’s Tangguh Train-3, will start this year to help boost production, SKK Migas officials said.

Indonesia aims to increase crude oil production to 1 million bpd by 2030 and is stepping up efforts to attract investment.

Upstream investment last year increased from $10.9 billion in 2021 to $12.3 billion, with a target of $15.54 billion in 2023.

Drilling numbers, which had been on a downward trend over the past decade, began to increase last year, data from SKK Migas showed.

Regulators have approved plans to develop a number of oil and gas projects in 2022 with investments totaling $22.89 billion over the next few years, according to official Benny Rubiantara. It may approve development plans for 45 new projects, he added.

strategic project

SKK Migas chief Dwi said he hopes development of strategic projects such as the Indonesia Deepwater Development (IDD) and the Masela gas block will resume soon.

Chevron is nearing a deal with an investor to transfer a stake in IDD and the right to operate, Dwi said. Chevron announced his intention to close the project in early 2020 as he makes sweeping changes to his global portfolio.

“Chevron and his successor have agreed that this could be completed in the first quarter,” Dwi said.

SKK Migas hopes the IDD will be operational by 2028.

Chevron did not immediately respond to Reuters’ request for comment.

Meanwhile, Indonesia’s state-owned energy company Pertamina is currently in talks to take over Shell’s partnership in the Masela gas project, Dowi said.

Reporting by Francisca Nangoy, Bernadette Christina Munthe.Edited by Kanupriya Kapoor

Our Standards: Thomson Reuters Trust Principles.

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