November 7, 2018 / 10:59 AM / 4 months ago

UPDATE 1-Indonesia's Pertamina forecasts 2019 oil output of 414,000 bpd

(Adds details)

By Wilda Asmarini

JAKARTA, Nov 7 (Reuters) - Indonesia’s Pertamina is targeting 2019 crude oil output of 414,000 barrels per day (bpd) and natural gas output of 2,944 million cubic feet per day (mmcfd), an official at the state energy company said on Wednesday.

That compares to a full-year 2018 output target of 400,000 bpd of oil and 3,069 mmcfd of gas, Pertamina upstream planning chief Meidawati told reporters.

“Oil output will increase because we will have an increase in production at several fields like Banyu Urip and from international (assets),” she said.

Pertamina’s gas production was expected to decline in 2019 “because there is a decline in reservoirs (and) declines from the Mahakam block,” Meidawati said.

From January to September this year, Pertamina’s oil output was 384,000 bpd on average and gas output was 3,060 mmcfd, Meidawati said.

Pertamina is planning capital spending of between $2.5 billion and $3 billion in the upstream sector in 2019 versus an expected $2.3 billion to $2.4 billion in 2018.

Meidawati said Pertamina’s upstream capital expenditure and output targets were subject to approval by the State-Owned Enterprise Ministry.

Pertamina needs $100 billion over the next 12 years to boost oil output growth, an official said in September.

Pertamina was seen posting its lowest first-half profit in four years for 2018, at less than 5 trillion rupiah ($343.05 million), another official said in September, squeezed by government fuel polices, higher oil prices and a slide in the rupiah exchange rate.

Pertamina has benefitted from government moves to nationalise energy assets, and took over Mahakam from France’s Total and Japan’s Inpex this year, but investment in exploration in that field has declined.

Indonesia’s oil output has been declining for decades, from a peak of more than 1.5 million bpd in the 1970s and 1990s, to below 800,000 bpd now, according to industry data.

$1 = 14,575 rupiah Reporting by Wilda Asmarini Writing by Fergus Jensen Editing by Christian Schmollinger and Edmund Blair

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