INDONESIA PUSHES EXXONMOBIL TO BOOST OIL PRODUCTION AMID DECLINE

By Mohd Iswandi Kasan Anuar

JAKARTA, Sept 30 (Bernama) -- Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia has urged ExxonMobil Cepu Ltd (EMCL) to enhance its production capacity to 150,000 barrels of oil per day (BOPD) by 2026 from the current target of 125,000 BOPD.

He noted that the country’s oil production is experiencing a significant decline, prompting the government to emphasise the need for increased national output to reduce dependence on imports.

“Currently, our national oil production is around 577,000 BOPD, with the Cepu Block contributing approximately 144,000 BOPD, making it one of the largest producers in the country,” Bahlil stated.

According to a statement from the ministry, this directive was announced during a meeting with operators at the Cepu Block, an oil and gas exploration area located in the Bojonegoro district, East Java, on Monday.

Bahlil expressed confidence, stating: “I am confident that with effective management and the innovative spirit of the Exxon team, we can surpass 150,000 barrels per day.”

He reiterated that the current government, along with the incoming administration of President-elect Prabowo Subianto, fully supports this initiative, recognising its significant impact on state revenues and foreign reserves.

In response, EMCL president Carole Gall said they are committed to increasing production from the Cepu Block, highlighting the anticipated first oil production from the Banyu Urip infill clastic drilling, which has started this year and is expected to yield around 13,300 BOPD.

“This is a vital step to boosting production from the Cepu Block and a historic achievement with the Banyu Urip infill clastic drilling,” Gall said, adding that the success of this project is crucial for ExxonMobil, its partners, and Indonesia’s energy security.

-- BERNAMA