HomeNewsIndonesia's 2024 oil, gas lifting set to fall short of government targets, regulator says

Indonesia's 2024 oil, gas lifting set to fall short of government targets, regulator says

1/12/2024

(Reuters) - Indonesia's oil and gas lifting this year is likely to fall below government targets, upstream oil and gas regulator SKK Migas said on Friday but pledged efforts to fill the gap.

SKK Migas predicts lifting of oil at 596,000 barrels per day (bpd) in 2024 and gas at 5,544 million standard cubic feet per day (mmscfd) based on work plans submitted by contractors.

That compares with government targets of 635,000 bpd and 5,785 mmscfd.

SKK Migas Chairman Dwi Soetjipto said the regulator was committed to ensuring that oil lifting at least matched the 2023 level of 605,000 bpd.

Such efforts may include minimizing shutdowns at blocks and adding rigs when possible, said senior official Wahju Wibowo.

Oil and gas lifting in Indonesia, which was once an OPEC member, has been sluggish due to depleting reserves and delays to major new projects, and authorities are keen to reverse the trend following major discoveries in recent years.

In 2024, SKK Migas is aiming for 15 projects to come on stream, which together hold the potential for additional lifting of nearly 42,000 bpd for oil and 324 mmscfd for gas.

By 2030, Indonesia expects major projects worth $45 billion to be completed, including Inpex's Masela block and Eni's Indonesia Deepwater Development.

Separately, SKK Migas estimated Indonesia would produce around 250 cargoes of liquefied natural gas this year, of which 167-170 would be exported.

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