Indonesia asks Exxon to increase oil production

Indonesia asked US supermajor ExxonMobil on Monday to raise the country’s crude output to 150,000 barrels per day (bpd) in 2026 from 125,000 bpd, Indonesia’s energy and mineral resources minister Bahlil Lahadalia said.

Lahadalia, who visited the Cepu block in East Java – Exxon’s flagship upstream project in the country – called on the supermajor to boost production to help the country reduce its budget deficit and import dependency.

“Indonesia’s current oil production is about 577,000 bpd, of which the Cepu Block contributes about 144,000 bpd, making it one of the largest nationally,” Lahadalia said in a statement posted on the Ministry’s website Energy.

The minister asked Carole Gall, president of ExxonMobil Indonesia, the US firm, to increase its production target from 125,000 bpd to 150,000 bpd in 2026.

“While Exxon is currently targeting 125,000 bpd for 2026, I am confident that it can exceed 150,000 bpd in 2026 thanks to the management system, work ethic and creativity of the Exxon team,” the minister said.

Lahadalia added that this increase would have a big impact on Indonesia’s income and foreign exchange reserves.

“Our country needs support from experienced companies to increase its production,” the minister noted.

Exxon is working to increase production at the Cepu block with the Banyu Urip field infill project, Exxon’s Gall was quoted as saying by Indonesia’s energy ministry.

ExxonMobil signed the Production Sharing Agreement (PSC) for the Cepu Block in 2005 through ExxonMobil Cepu Limited (EMCL). The contract was signed with PT Pertamina EP Cepu and four local companies.

EMCL serves as the operator for the Cepu block in East Java. Together with partners and government support, the ExxonMobil affiliate helps strengthen Indonesia’s energy security, contributing about 25 percent of the nation’s crude oil production, Exxon says. The Banyu Urip project is the first development in the Bloc Cepu contract area.

By Charles Kennedy for Oilprice.com

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