President Asked to Take Over Oil and Gas Management
Tuesday, 09 January, 2007 | 12:38 WIB

Tempo Interactive, Jakarta: President Susilo Bambang Yudhoyono has been asked to take over oil and natural gas management so that national oil production does not sharply decrease. The government has also been asked to evaluate and to audit the Upstream Oil and Gas Executive Body (BP Migas) and the Department of Energy and Mineral Resources l.

National oil production during 2006 failed to meet the target that the state budget set with 1.050 million barrels per day. Last year, oil production was only 1.007 million barrels. In addition, oil production in 2005 also decreased to 1.060 million barrels compared to the previous 1.096 million barrels in 2004.

According to a member of the Budget Committee at the House of Representatives Ramson Siagian, during the last five years, national oil production has sharply decreased. New oil fields that the government offers each year has not had any impact yet. “The increase of the world's oil price should have pushed the government to increase production,” he told Tempo yesterday (01/08).

He said that the decrease of national oil production cannot be omitted. Therefore, Ramson said, the President must intervene in handling the management. “The President must take over the management of national oil. If he does not, Indonesian oil production will decrease drastically,” he said.

Director of Upstream Exploitation at the Department of Energy Priyono confirmed the decrease of national oil production during the last five years. According to him, the decrease occurred since some oil wells in Indonesia were running out of production. “The largest decrease happened in Chevron's fields, reaching 200 thousand barrels,” he told Tempo yesterday (01/08).

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