The Indonesian government is looking to target gas production between 1.1-1.3 MMboe/d, as part of its 2016 state budget.
The government also agreed on Indonesian crude price of US$60-$70 per barrel and subsidy for diesel fuel at Rp 1000 per liter, local Jakarta news reported.
Last week, in a meeting between the government and the Commission VII of the House of Representatives the group decided on oil lifting at 800,000-830,000 b/d in 2016.
Sudirman Said, minister of energy and mineral resources noted increasing production in the Cepu block ranging from 161,100-165,000 b/d has influenced the increase in oil lifting next year.
According to the Indonesian Ministry of Energy and Mineral Resource website, this year, Cepu block production is targeted to reach 99,600 b/d. Until May 2015, its production was about 47,200 b/d.
The government is also now in the process of transferring the Mahakam block operatorship to state-owned PT Pertamina. From 2018, Pertamina will take control of the gas field, currently operated by Total Indonesia and Inpex Corp. SKK Migas has been assigned to evaluate the Mahakam block asset and discuss the terms and condition of the new contract.
Minister of state owned enterprise Rini Soemarno said, “ This is a big opportunity for Pertamina to establish as a reliable national oil company by building collaboration with Total as the previous operator. I have the confidence Total and Inpex will synergize with Pertamina not only in the context of Mahakam block, but also other blocks in Indonesia, as well as opportunity in other countries."
Earlier this month, the Organization of the Petroleum Exporting Countries (OPEC) members approved Indonesia’s bid to rejoin the group.
Image: Pertamina workers / Ministry of Energy and Mineral Resource
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