Indonesia pumps up the volume

Crude production rose to 833,800 barrels per day this month, up from 813,000 bpd in July. The condensate output was down to 128,000 bpd from 132,000 bpd in the same period.

"There are technical problems at several gas fields which caused condensate output to fall. We expect output to be stable next month," the official, who declined to be named, told Reuters.

The official at the mines and energy ministry had previously predicted that Indonesia would fail to meet its target in this year’s budget for crude and condensate production of 965,000 bpd, but that its impact on the national budget would not be significant.

Indonesia has struggled to attract fresh investment to develop new fields, partly due to uncertain regulations.

Indonesia has offered new exploration rights and has said it will offer new incentives to oil and gas investors, including more favourable tax treatment and production splits.

But industry players have said the incentives are not enough. Major global oil contractors working in Indonesia include ExxonMobil, Chevron, ConocoPhillips, and France's Total.

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