After reporting a drop in oil and gas output in Q1, SKK Migas (Indonesia’s upstream oil and gas regulator) has cut its full-year production outlook for the country.
A further blow to Indonesia’s oil and gas production triggered by the lower oil prices and coronavirus pandemic. A contraction for four years in a row has been expected for the production in 2020. Output levels kept below government targets due to ageing fields and delays to new projects.
Versus 746,300 bpd in 2019, Indonesia’s crude oil lifting in Q1 stood at 701,600 bpd. Compared to 5,912 mmcfd last year, gas lifting in Q1 stood at 5,866 mmcfd. While gas production outlook for this year trimmed to 5,727 mmcfd by SKK Migas, crude oil slashed to 725,000 bpd.
Due to new protocols to curb the spread of the virus, the productivity of the oil and gas workforce has slowed, meaning several projects which were supposed to come onstream this year will see delays.
From a peak of more than 1.5 million bpd in the mid-1990s, Indonesia’s crude oil output has been declining for years to below 800,000 bpd now as key fields run dry.
