05 December 2013, News Wires – Indonesia will likely miss its 2014 oil production target of 870,000 barrels per day because of delays in developing a key field, necessitating more imports by Southeast Asia’s largest economy.
“Our target of 870,000 barrels a day will most likely not be reached,” Reuters quoted Deputy Energy & Mineral Resources Minister Susilo Siswoutomo telling an oil and gas conference on Thursday.
He added that output could be around 850,000 bpd, or 860,000 bpd at most.
Due to the production shortfall and rising demand, crude product imports will increase, putting pressure on the country’s widening trade deficit, Siswoutomo said.
“Next year (imports) will be 600,000, probably 660,000,” he said, adding that imports averaged around 500,000 bpd this year.
Siswoutomo cited delays in developing production facilities at the Cepu oilfield operated by ExxonMobil that was originally scheduled for full field output in August 2014 as the reason for the projected output shortfall.
“With the delay there is no doubt that the production will drop, so when you are talking about the trade deficit from oil and gas there is no way we can reduce it, because of the imports of oil,” he said.
Because of Indonesia’s economic growth of around 6%, energy demand will increase by about 7%-8% in 2014, Siswoutomo said. The country’s energy consumption is expected to climb from around 1.4 million bpd at present to roughly 1.5 million bpd in 2014 and 1.7 million bpd in 2015, he said.
Indonesian regulator SKKMigas was less optimistic about the 2014 crude output volumes.
“At most we will propose 815,000 to 820,000 barrels per day,” SKKMigas spokesman Elan Biantoro told Reuters, adding that crude output had fallen to about 810,000 bpd as of 20 November.