Indonesia trims oil lifting target next year as price down

The Indonesian government has reduced oil lifting (after sold) target next year as subdued global oil prices hampers exploration activity.

Indonesian Finance Minister Bambang Brodjonegoro said on Friday that the government set oil lifting target at 740,000 to 760,000 barrel per day in 2016, lower than this year's estimate of 830,000 barrel per day.

Minister Brodjonegoro disclosed that natural decline of production at major oil fields and the weak prices contribute to the reduction of the oil lifting target.

"Investment on oil and gas exploration has been hampered by low global oil prices," he said on Friday evening at the parliament building.

The government sets Indonesia crude price or ICP at 35 to 45 U.S. dollars per barrel for next year, according to him.

Global oil price is at the level of 49 U.S. dollar per barrel on Friday and in the near future it is forecast to reach at the range of 40 to 60 U.S. dollars per barrel, due to oversupply, according to experts.

Indonesia's oil-and-gas export fell by 28.44 percent or 352 million U.S. dollars to 886.8 million U.S. dollars in April on monthly basis, according to the national statistic bureau.

Indonesia has proven oil reserve of 3.7 billion barrels and its production keeps dwindling due to aging wells and lacking of fresh investment that led the country to be a net-oil importer and exited from OPEC membership in 2008, but now the nation returns to the bloc. Endit