SKK Migas: Indonesia Faces Challenges in Meeting 2013 O&G Targets

 Indonesia's upstream oil and gas unit SKK Migas warned Thursday that the country could face challenges in achieving its oil and gas targets this year, amid a stream of factors that have negatively impacted exploration and production efforts.

In a statement released Thursday, SKK Migas noted that rig procurement issues, land acquisition problems, evaluation plan delays and unforeseen weather conditions are obstacles that could lead to a lower-than-expected oil and gas production target this year.

State-backed Pertamina Hulu Energi (PHE) West Madura Offshore (WMO) was in late January, forced to shut down operations at the Production Sharing Contract sited offshore East Java due to heavy storms.

SKK Migas' Chief, Rudi Rubiandini, said that he expects the country's oil production to drop by a slight 0.2 percent this year, while its gas output is estimated to rise 4.2 percent. Indonesia's oil production dropped by 4.7 percent last year; the country's gas output declined 3.1 percent in the same period.

"We really need help from all sides," Rubiandini was quoted as telling local media Thursday.

The Indonesian government is aiming to produce 900,000 barrels per day of oil (bopd) for this year, and one million bopd in 2014. Indonesia produced 865,000 bopd of oil in 2012, well below its target of 930,000 bopd.