Oil lifting target for 2016 realistic: Observer

JAKARTA. An energy observer described as realistic the oil lifting target of 830,000 barrels per day as set in the 2016 draft state budget.

Komaidi Notonegoro from the ReforMiner Institute said the target is realistic as the country would have additional production from the Banyuurip field of the Cepu Block.

President Joko Widodo said in his budget speech at the parliament on Friday the target for oil lifting is set at 830,000 barrels per day for 2016.

Meanwhile, natural gas lifting target is set at 1.55 million barrel oil equivalent per day and the price of the country's marker crude is set at US$60 per barrel.

Komaidi said in apart from additional production from Cepu, the government is expected to continue to rely more production from old wells.

Currently the Banyuurip field in Bojonegoro, East Java, has a production capacity of 185,000 barrels per day with daily production averaging 80,000 barrels.

The production is to be raised to 149,000 barrels per day by the end of in August and to 205,000 barrels in November, 2015.

Komaidi predicted the oil price would remain low in the world market in 2016 .

The estimated price of the country's crude at US$60 per barrel is quite conservative, he said In 2015, the oil lifting target is set as 825,000 barrels per day with gas lifting at 1.221 million barrel oil equivalent.