The oil and gas production will likely fail to reach the target set in the 2013 state budget, SKK Migas Chief Rudi Rubiandini said.Jakarta (ANTARA News) - State revenues from the oil and gas sector this year are predicted to fall short of the target of US$31.7 billion because of low production, the special task force of upstream oil and gas (SKK Migas) said.
The oil and gas production will likely fail to reach the target set in the 2013 state budget, SKK Migas Chief Rudi Rubiandini said in a hearing with the House of Representatives Commission VII here on Wednesday.
He predicted that the oil and gas sector will contribute US$27.9-29.5 billion to the state revenues this year.
"In 2013, our oil production will range between 830,000 and 850,000 barrels per day and gas production will reach 6,939 MMSCFD, an equivalent of 1.24 million barrels of oil per day," he said.
As such, the SKK Migas has predicted that the domestic oil and gas production this year will reach 2.07-2.09 million barrels per day, he said.
Under the 2013 state budget, oil production has been projected to reach 900,000 bpd, gas 7,890 MMSCFD, and oil and gas 2.26 million barrels equivalent to oil per day.
The oil and gas revenue forecast is based on the assumption that the oil price is US$105 per barrel and the gas price is US$9.35 per MMBTU, he said.
Rudi said the SKK Migas has done it utmost to increase production.
In 2012 oil production reached 826,000 bpd. With oil production declining by a range of 3-5 percent in the past three to five years, the production must reach 803,000 bpd this year, he said.
"We are determined to keep the decline at only 0 percent, or even higher," he said.
It is not easy to raise oil production to 830,000 bpd from 803,000 bpd, he said.(*)
Editor: Heru Purwanto
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