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Prices Fall, Oil Production Could Collapse

The government is targeting oil production this year by 830 040 barrels per day. Target production is predicted to be difficult to achieve because the price of crude oil continues to drop to around US $ 35 per barrel.

This condition also makes the contractor the contract (PSC) lazy boost production because of the advantages of being thin. Moreover, the mainstay of the production comes from Banyu Urip, in Cepu who always misses the target.Banyu Urip production in 2015 to be the culprit of not reaching production of 825,000 bpd should. As a result of oil production in 2015 only reached 777 560 barrels per day (bpd).


Data attainment of oil production in 2015, Mobil Cepu Ltd. (MCL) in first place, with a shortage of oil and condensate production is only 46 089 bpd. This figure is 61 percent of last year's target.


As for gas production, MCL noted shortcomings 37 MMSCFD or only able to produce 32.6 percent of last year's target.Vice President of Public and Government Affairs ExxonMobil Erwin Maryoto revealed, in determining the planning of operations or projects, which is also the parent ExxonMobil MCL consider various scenarios.


"Including the current oil price," he told Cash, Thursday (01/07/2016).Erwin said, Exxon seeks to meet production targets that have been approved by SKK Migas. One way to maximize production.


"We will also maximize production facility has been running well," he said.In the work program and budget targets this year MCL 168 430 bpd of oil production.


Head of Public Relations SKK Migas, Elan Biantoro sure MCL could reach its peak in March 2016."Target production MCL seems to be better because the problem is uncertainted onstream project and now the project was already onstream, so stay the road," he said, Thursday (07/01/2016).


If the MCL oil production this year was not able to reach full production again, SKK Migas can not impose sanctions.Only by Elan, directly, the company's revenue will decrease due to bear losses due to delays in project operations. With the delay in the operation of a project, the cost would be swell.


"Mobil Cepu will bear the loss because the government already has a ceiling of turnover costs plus a 10 percent increase, over 10 percent of it will not be replaced," said Elan to Cash, Thursday (07/01/2016).Energy Komaidi pessimistic observers Notonegoro MCL will be able to achieve production targets this year. He saw there are still some problems, such as licensing with local governments and oil prices are not good.


"Oil prices and the problems complained of by oil and gas contractors to date have not been able to overcome well by the government, such as licensing issues," said Komaidi. (Febrina Ratna Iskana)

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