Page 6 - AsianOil Week 42 2021

AsianOil SOUTHEAST ASIA AsianOil

Indonesia slashes 2021

production targets

POLICY THE Indonesian government has cut the coun- the government’s 2030 target of 1mn bpd of oil
try’s oil and gas production targets for this year and 12 bcf (340mn cubic metres) per day is also
after several upstream projects were affected by at risk.
the coronavirus (COVID-19) pandemic. The regulator, however, chose this week to high-
The country’s oil lifting targeting has been light four nationally important projects that it said
reduced from 705,000 barrels per day to 665,000 would boost national output by a combined 65,000
bpd, the head of upstream regulator SKK Migas, bpd of oil and 3.48 bcf per day of gas. The four
Dwi Soetjipto, told a virtual news briefing on Octo- include state-owned Pertamina’s Jambaran Tiung
ber 19. The gas lifting target was revised down from Biru (JTB), BP’s Tangguh Train III, Inpex and Royal
5.64bn cubic feet (159.72mn cubic metres) per day Dutch Shell’s Abadi Masela LNG and Chevron’s
to 5.53 bcf (156.61 mcm) per day. Indonesia Deepwater Development (IDD). Only
Soetjipto said the country’s third-quarter oil JTB and Tangguh Train III are nearing the end
production of 661,000 bpd had fallen around of development, however, with the other two still
20,000 bpd short of predicted output. The coun- bogged down by divestment processes.
try’s gas lifting amounted to 5.49 bcf (155.48 Soetjipto said Pertamina’s project was 94.26%
mcm) per day. complete, the onshore component of BP’s expan-
The official added that the pandemic had led sion had reached 91.2% and the offshore seg-
to several unplanned shutdowns, delayed invest- ment was 99.2% finished.
ments and curtailed upstream activity. The pro- SKK Migas deputy head Fatar Yani Abdur-
duction revision comes after several months of rahman said the search for Shell’s replacement
mounting speculation about the government’s in Abadi Masela LNG was ongoing. Abdurrah-
short- and medium-term output targets. man noted that the government was still looking
SKK Migas has repeatedly warned that this for investors to take over from Chevron in IDD,
year’s production target was likely to be missed while saying that Italian major Eni was still con-
and has even warned that without policy changes sidered the strongest candidate.™

Petronas to boost upstream capex

FINANCE & MALAYSIA’S state-owned Petronas has “We hope that we are able to generate [a
INVESTMENT earmarked around MYR20bn ($4.81bn) healthy] cash flow from the production that we
per year for upstream operations over the have. The production will be mainly from gas.
next seven years, CEO Adif Zulkifli has We already have a couple of [domestic] pro-
revealed. jects in the pipeline. Internationally, we are also
The capital expenditure plan for 2022-2027 is ramping up projects in Canada and Argentina,”
expected to allow the company to grow its pro- he said.
duction by 1-5% per year over the period, the Of the company’s MYR20bn annual budget,
official Bernama news agency quoted Zulkifli Zulkifli said Petronas would split the funding
as saying on October 19. Petronas, which pro- 60:40 between domestic and foreign projects.
duced 2.35mn barrels of oil equivalent per day Energy consultancy Rystad Energy has said
(boepd) in the second quarter, is aiming to invest in a new report that Petronas will accelerate its
MYR16-17bn ($3.85bn-4.09bn) in upstream upstream final investment decisions (FIDs) in
projects this year. 2022-2023 after having reined in spending over

P6 www. NEWSBASE .com Week 42 21•October•2021