Page 4 - AsianOil Week 29 2022

AsianOil COMMENTARY AsianOil

Indonesia set to miss

2022 lifting targets

Indonesia looks set to fall short of its oil and gas

lifting targets for 2022 after a series of setbacks

PERFORMANCE INDONESIA appears to be on course to miss Challenges
its oil and gas lifting targets for 2022 after out- The shortfall in output during the first half of
WHAT: put levels in the first half of the year fell short 2022 has been attributed to various setbacks,
Indonesia appears to be of government expectations. This week, data including disruptions to some production facil-
on course to miss its oil from upstream regulator SKK Migas showed ities and delays to certain projects that remain
and gas lifting targets for that the country produced 1.57mn barrels of under development.
2022. oil equivalent per day of oil and gas in the first As a result of unplanned shutdowns and cer-
six months of 2022, which equated to roughly tain other incidents that disrupted production,
WHY: 90% of the government’s target of 1.74mn SKK Migas has ordered maintenance audits
Progress has been boepd. for oil and gas contractors in a bid to avoid
hampered by disruptions Indonesia’s oil lifting averaged 614,500 barrels similar disruptions in the future. Meanwhile,
to production facilities per day (bpd) over the first six months of the major projects including Pertamina’s Jambaran
and delays to certain year, while gas lifting over the period came in Tiung Baru (JTB) gas development and Train
projects under at 5.3bn cubic feet (150.8mn cubic metres) per 3 at BP’s Tangguh LNG continue to run into
development. day. While this was below target, it represented further delays. JTB is now anticipated to come
a slight increase on average figures for the first online in July or August, instead of May as pre-
WHAT NEXT: quarter of 2022. viously expected. Meanwhile, Tangguh Train 3
The country has launched Lifting figures represent Indonesia’s output is now expected to enter service in March 2023
its first 2022 bid round that is distributed. Jakarta’s oil lifting target for instead of December 2022. This represents fur-
as it seeks to attract new the whole of 2022 is 703,000 bpd, while its natu- ther delays to both projects after their timelines
investment into oil and ral gas lifting goal is 5.8 bcf (164.3 mcm) per day. were pushed back owing to the coronavirus
gas. But SKK Migas now expects output for 2022 to (COVID-19) pandemic.
come in at 633,000 bpd of oil and 5.4 bcf (152.3 SKK Migas had factored in output from both
mcm) per day. projects when it set the 2022 production target.

Start-up of Train 3 at
Tangguh LNG has been
pushed back to 2023.

P4 www. NEWSBASE .com Week 29 22•July•2022