October 01, 2024 [Oil Price]- Indonesia on Monday asked U.S. supermajor ExxonMobil to raise its crude oil production in the country to 150,000 barrels per day (bpd) in 2026, up from 125,000 bpd, Bahlil Lahadalia, Indonesia’s Minister of Energy and Mineral Resources, said.
Lahadalia, who visited the Cepu Block in East Java – Exxon’s flagship upstream project in the country – called on the supermajor to boost output to help the country reduce its budget deficit and dependence on imports.
“Indonesia’s current oil production is about 577,000 bpd, of which the Cepu Block contributes around 144,000 bpd, making it one of the largest nationally,” Lahadalia said in a statement posted on the energy ministry’s website.
The minister asked Carole Gall, President of ExxonMobil in Indonesia, the U.S. firm to boost 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 sure it can top 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 revenues and foreign exchange reserves.
“Our country needs support from experienced companies to increase its production,” the minister noted.
Exxon is working to boost production at Cepu Block with the infill project at the Banyu Urip field, Exxon’s Gall was quoted as saying by the Indonesian energy ministry.
ExxonMobil signed the Production Sharing Contract (PSC) for the Cepu Block in 2005 via ExxonMobil Cepu Limited (EMCL). The contract was signed with PT Pertamina EP Cepu and four local government companies.
EMCL serves as an operator for the Cepu block in East Java. Along with the partners and government support, ExxonMobil’s affiliate helps to strengthen Indonesia’s energy security by contributing around 25% of the national crude oil production, Exxon says. The Banyu Urip project is the first development under the Cepu Block contract area.
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