Continuing the downward trend in Indonesia’s oil and gas production

Analysts predicted that Indonesia’s oil and gas production would decline for the fourth consecutive year in 2020.

Decline in Indonesia’s oil and gas production comes as Jakarta seeks new legislation to cut administrative formalities and attract foreign investment for the industry, according to the Engineer Offshore.

Details of the plan have not yet been completed, but analysts believe it will take time to boost exploration and production in Southeast Asia’s largest economy.

Difficulties in the fields and delays in the exploitation of new projects have increased the production capacity to a level lower than the government targets.

Indonesia’s oil production has been declining for years, crude oil output now rising from more than 1.5 million barrels per day in the mid-1980s, with the main fields becoming obsolete and declining production has reached less than 5,000 barrels a day.

“Any increase in new projects will be offset by the decline in Chevron’s oil production, Pretamina,” said Pratik Pandi, an analyst at Ristad Energy.