Indonesia’s Realization of Oil and Gas Production, Lifting in Q3 Decline Due to Coronavirus

JAKARTA, KOMPAS.com – Indonesia recorded a decline in the realization of oil and gas production and lifting in the third quarter of 2020 due to the Covid-19 pandemic.

Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) head Dwi Soetjipto announced on Friday that from July to August 2020, the realization of oil production reached 710,000 barrels per day (bpd).

Even though it was equivalent to 100.4 percent of the work program and budget target, the realization was down 4.71 percent from 745,100 bpd in the same period last year.

Meanwhile, Dwi said, the realization of oil lifting until the third quarter reached 706,200 bpd, or down 5.37 percent from 746,300 bpd last year.

Also read: Indonesia Aims to Reach Upstream Oil and Gas Sector Target Next Year

Dwi said the difference between the production and lifting was because contractors (K3S) have stored the oil amid the low price of crude oil. “As the price remains low, many [contractors] are still holding back the oil production,” Dwi said in a virtual press conference on October 23.

He went on to say that gas production and lifting have also declined. In the third quarter, the realization of gas production was 6.7 million standard cubic feet per day (mmscfd), or down 6.9 percent from 7.2 mmscfd in 2019.

Also read: IMF: Indonesia Economy to Contract 1.5 Percent Next Year due to Covid-19

The gas lifting from July to September this year has decreased by 5.5 mmscfd from 5.9 mmscfd in the previous period.

“We can see that the demand has decreased due to the Covid-19 pandemic,” Dwi said.
He said that the realization of oil and gas production as per the third quarter reached 1.9 million barrels of oil equivalent per day (boepd) and the lifting reached 1.6 million boepd, respectively.

(Writer: Rully R. Ramli | Editor: Erlangga Djumena)

Source: https://money.kompas.com/read/2020/10/23/173800426/terdampak-pandemi-realisasi-produksi-dan-lifting-migas-nasional-turun.