INDONESIA'S OIL DOWN
Platts said, the Indonesian government has proposed to the parliament revising down the country's 2016 crude oil production target by 2.4% to 810,000 b/d, from the initial target of 830,000 b/d, as some producers had reduced their output levels due to lower global prices, a senior official said late Wednesday.
"Until the end of this year, we estimate that some oil and gas producers will either delay or revise down their production levels due to lower crude prices. However, gas production is expected to remain unchanged," energy and mines minister Sudirman Said said at a parliamentary meeting.
Production at Cepu was initially estimated to reach 161,100 b/d this year, but the block is now estimated to pump 163,900 b/d in 2016.
However, other companies such as Chevron in East Kalimantan, Pertamina Hulu Energi in the offshore Northwest Java block and Petronas in the Ketapang block are estimated to be producing below previous estimates, according to data from upstream regulator SKK Migas.
Indonesia produced 786,000 b/d of crude oil and 8.078 cu ft/d of gas in 2015.
It pumped 835,000 b/d of crude and 8.29 billion cu ft/d of gas over the first three months of 2016. The target for gas production in 2016 is 7.825 billion cu ft/d.
The government has also proposed revising down the Indonesian Crude price target in the 2016 state budget from $50/b to $40/b, according to Said.
Under Indonesian law, the government can make a revision to its state budget, but has to first present its proposal to the parliament.
The government has also proposed to the parliament cutting the fixed subsidy for gasoil from Rupiah 1,000/liter currently to Rupiah 350/liter, Said said. Currently, gasoil is sold at Rupiah 5,150/liter.
In the original 2016 state budget, the government had pledged a total of Rupiah 63.6 trillion for fuel subsidies, including Rupiah 16 trillion for gasoil and Rupiah 47.5 trillion for LPG, the minister said.
"We still want to provide a subsidy to the public but we have to see the fiscal situation too," he added.
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