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Indonesian govt revenue from oil and gas seen down 16% y/y in 2016

Oil prices hit their lowest in over 11 years on Wednesday, as the row between Saudi Arabia and Iran was seen making any cooperation between major exporters to cut output even more unlikely.

[JAKARTA] Indonesian government revenue from the upstream oil and gas sector is expected to decline 16 per cent to US$10.77 billion in 2016 from US$12.86 billion in 2015, the country's oil and gas regulator (SKKMigas) said on Tuesday.

The regulator is targeting an average daily crude oil output of 827,780 barrels per day (bpd) in 2016, SKKMigas Chairman Amien Sunaryadi said, and an average gas output of 6,266 million standard cubic feet per day.

The Cepu block, operated by Exxon Mobil Corp, will reach peak output of 168,430 bpd in March, Sunaryadi said, later than an earlier target of January.

No reason was given for the delay or for the expected decline in state revenues.