National Oil and Gas Industry

OVERVIEW

Indonesia’s national oil production is in a nadir recording one of its lowest levels in 2014 evident in  the failure to achieve the national oil lifting target of 870,000 barrel per day as set out in the State Budget Plan (APBN). This was revealed earlier this year when SKK Migas publicly announced that the country’s 2014 oil lifting target will be lowered to 804,000 barrel per day.[1]

Despite the difficult circumstances national oil production is facing, the national gas industry, however, is looking promising, with continued high gas reserve levels. These claims are supported by the Ministry of Energy and Mineral Resources’ publication which states that as of 2008, Indonesia’s natural gas reserves reached 170 trillion standard cubic feet (tscf),[2]sufficient to meet both domestic requirements and export demand.