Natural gas output at Indonesia's Mahakam block rose to 590 million standard cubic feet per day (mmscfd) in October, the state energy company Pertamina said on Wednesday, as the operator boosted drilling.
Once a major gas-producing block, output at Mahakam dropped to 505 MMSCFD earlier this year, a company spokesperson said. Production was expected to hit an average 524 mmscfd this year.
"We have implemented more effective, efficient, and faster drilling in finding new oil and gas resources," said Pertamina Hulu Mahakam General Manager Krisna, adding that government incentives, including VAT exemption, helped the company increase its investment.
New wells from Mahakam's North Sisi and North Nubi fields, which started operation in recent months, contributed to the higher output, Krisna said, adding the company would continue to invest in new wells.
Indonesia's gas distribution in the January to September period stood at 5,353 mmscfd, below the government's 5,800 mmscfd target, due to delays in several major projects, upstream oil and gas regulator SKK Migas said earlier this month.
(Reuters - Reporting by Bernadette Christina; Editing by Fransiska Nangoy and Kanupriya Kapoor)
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