Indonesia oil production falls below 600,000 BPD target

Indonesia's national oil production averaged 578,156 barrels per day (BPD) through July 2026, falling short of the 610,000 BPD target set in the 2026 state budget. Officials from the Ministry of Energy and Mineral Resources (ESDM) and SKK Migas identified several operational challenges contributing to this shortfall.

Major production hubs, including the Rokan Block and Cepu Block, have faced significant setbacks. The Rokan Block, operated by PT Pertamina Hulu Rokan, has been impacted by gas supply disruptions caused by pipeline leaks at PT Transportasi Gas Indonesia (TGI) and ongoing electrical system issues at the MCTN power plant. Meanwhile, the Cepu Block, operated by ExxonMobil Cepu Ltd, is experiencing an extreme natural decline in production levels.

In contrast to these challenges, there has been positive development in the Jabung Working Area in Jambi. PetroChina International Jabung Ltd successfully increased gas production from the NG-24HZ well through a workover program, reaching 5.3 MMSCFD—significantly exceeding the initial target of 1.14 MMSCFD. The well is expected to be onstream by September 2026.