Indonesia’s first-quarter crude and natural gas production volumes missed their targets due to technical issues at wells and delays at BP’s Tangguh liquefied natural gas (LNG) project, data from upstream oil and gas regulator SKK Migas showed.
Crude oil production in the January to March period was 676,200 barrels per day (bpd) due to a higher water ratio in some of the oil wells and investment delays at some upstream projects due to the COVID-19 disruption last year, SKK Migas Chairman Dwi Soetjipto told a virtual press briefing on Monday. That was below Indonesia’s goal of 705,000 bpd.
First-quarter natural gas output was 5,539 million cubic feet per day (cf/d), down from its target of 5,638 million cf/d, Dwi said.
“The biggest gap for gas (production) was in BP Tangguh, because at the time the state budget was designed, it was assumed Tangguh 3 would be on-stream in 2021,” he said. “It has now shifted to either the end of the year or early in 2022.”
The start of operations of Train 3 at BP’s Tangguh LNG plant was pushed back again because of labor restrictions implemented as a precaution during the coronavirus pandemic, BP reported in September.
SKK Migas is maintaining this year’s production outlook as investments in the upstream sector is expected to recover, Dwi said. In 2021, the regulator estimated $12.4 billion of investment, up from $10.5 billion in 2020.
Last quarter, Indonesia sold 46.2 standard LNG cargoes, 29.3 of which were exported, said Arief Handoko, SKK Migas chief deputy said.
Read more: Virus set to delay BP’s Tangguh expansion