Oil and Gas Revenue Has Not Been Reached

    Although the realization of ready-to-sell oil production or lifting from January to September 2016 has been achieved, state revenues from the oil and gas sector are still below the target because oil prices are still low. State revenues from the oil and gas sector consist of non-tax state revenues (PNBP) and oil and gas taxes.

Blogger Agus Purnomo in SKK Migas

    Chief Spokesperson for the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Taslim Z. Yunus said that currently, the average oil production (lifting) is 834,600 barrels per day (bpd) or higher than the target of 820,000 bpd. Gas lifting averaged 6,900 million cubic feet per day (MMscfd) above the target of 6,438 MMscfd.

    According to him, the realization of oil and gas non-tax state revenue (PNBP) has not met the target due to the low oil price factor. He said that the average Indonesian crude price (ICP) from January to September 2016 was US $ 38 per barrel or lower than the assumed oil price set in the 2016 Revised State Budget of US $ 40 per barrel. 

    As a result, said Taslim, the oil and gas PNBP target has not been achieved. Taslim did not mention the current position of the oil and gas sector's state revenue realization. Based on data from SKK Migas, the realization of upstream oil and gas revenues in the first semester of 2016 amounted to the US $ 11.624 billion, consisting of the contractor share of US $ 1.83 billion, the return of operating costs, or cost recovery of US $ 5.5 billion, and the state share of US $ 4.23 billion.

    The upstream oil and gas revenue target based on the 2016 Revised State Budget is US $ 23.07 billion, consisting of US $ 3.72 billion for the contractor portion, the US $ 8.28 billion for cost recovery, and the US $ 10.88 billion for the state share. He admitted, from the production side, several fields showed good performance.

ExxonMobil Cepu Limited EMCL

    For example, he said, gas production from the Mahakam Block (Total E&P Indonesia) and the Corridor Block (ConocoPhillips), and the Cepu Block (ExxonMobil Cepu Limited EMCL) contributed greatly to the achievement of the oil and gas lifting target. Taslim hopes that by the end of this year the oil lifting can reach 820,000 bpd and gas 6,438 MMscfd. Excess gas production has been resolved by exporting in the form of Liquefied Natural Gas / LNG).

    This is because the domestic market does not yet have the ability to absorb the available gas supply. "For gas, we are still in surplus. We still export to this day. "

Blogger Agus Purnomo In Petronas

    Currently, there are 289 working areas with 41 exploration blocks of which are in the termination stage. Some of these blocks include Glagah Kambuna (Petronas), Palangkaraya (Petcon Bomeo Ltd), Halmahera Kofiau (Niko Resources), East Kangean (Greenstar Assets Limited), and other blocks.

“The exploration work area was returned because there were no discoveries and new discoveries.

Bisnis Indonesia, Page-30, Monday, Oct 24, 2016