Indonesia's Oil Output Lags Behind Target Amid Pipeline Leaks and Electricity Issues

The Indonesian Ministry of Energy and Mineral Resources reported that the country's average crude oil production stood at 578,156 barrels per day (bpd) as of July 31, falling short of its target of 610,000 bpd by the end of 2026. The shortfall is attributed to a gas transmission pipeline leak owned by PT Transportasi Gas Indonesia (TGI), which disrupted production at the Rokan Block in Riau Province.

According to Director General of Oil and Gas Laode Sulaeman, the leak resulted in a loss of potential oil production. Additionally, problems with the electricity system affected operations at the Rokan Block, further contributing to the decline in output.

The ministry is working to resolve the issues and optimize production at the Rokan Block. Meanwhile, the Cepu Block in East and Central Java is experiencing a natural decline in production, which the government is attempting to slow by communicating with the block's operator.