The Upstream Oil and Gas Regulatory Task Force (SKK Migas) has confirmed that the shortfall in oil and gas lifting throughout the first quarter of 2024 was due to floods and low gas demand from downstream industries.
Head of the Program and Communication Division of SKK Migas, Hudi Suryodipuro, said that there were floods and trucking issues affecting some areas of Sumatra which have recently corrected the initial lifting figures for the year.
“This has impacted contractor partnership contract (KKKS) of Pertamina Hulu Rokan, Seleraya Belida, Tiara Bumi, Pertamina Hulu Energi (PHE) Kampar, Pertamina EP in the Rantau region, Lirik, and Adera,” Hudi said on Thursday, April 11, 2024.
Additionally, according to Hudi, there was oil coagulation in the BSP KKKS and several KKKS operations experiencing unplanned shutdowns. Regarding the shortfall in gas distribution achievements, he said, it was mainly caused by a decrease in demand from gas-consuming industries.
“The majority of gas distribution not being achieved is due to the low demand for gas, especially in East Java, Natuna, and the extension of maintenance at Refinery Unit (RU) V,” he said.
According to the Ministry of Energy and Mineral Resources records, the oil lifting figure for January-March 2024 was at the level of 563,000 barrels of oil per day (bopd). This achievement accounted for 88.5 percent of the APBN 2024 target set at the level of 635,000 bopd.
Meanwhile, gas distribution achievement in the first quarter of 2024 only reached 5.075 million standard cubic feet per day (MMscfd). This figure represents about 87.7 percent of the APBN target set at 5.784 MMscfd.
Hudi projected that oil and gas lifting in the second quarter would meet the targets set by the 2024 State Budget (APBN). At that time, he said, the lifting achievement would be supported by the production plans of ExxonMobil Cepu Limited (EMCL) from the Banyu Urip Infill and Clastic project (BUIC). The project is expected to increase oil production from the Cepu Block by 42 million barrels.
In addition, drilling for 2 carbonate infill wells will be carried out this year, with onstream targets connected to existing facilities. Next, the project will be followed by drilling for 3 carbonate infill wells and 2 clastic wells within the timeframe until 2025 and are expected to be onstream by 2026.
Previously, Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, said that the oil and gas lifting figures for the first quarter of 2024 still fell short of the targets set in the APBN 2024. Arifin urged SKK Migas to maintain this year’s oil and gas lifting achievements which continue the declining trend.
“The challenges in 2024 are higher compared to previous years,” Arifin said in Jakarta on April 5, 2024.
