Oil Production Short of Target
Tuesday, 03 April, 2007 | 15:30 WIB

Tempo Interactive, Jakarta:Oil and condensate production up to March 2007 has not yet reached the target in the 2007 State Budget of 1.05 million barrels per day. Oil production is only 966,449 barrels per day.

Deputy Operation of the Oil and Gas Executing Body (BP Migas), Dody Hidayat, said that a number of operations in the field were still experiencing impediments so the 2007 State Budget production target has not yet been reached. “Not yet, there hasn’t been progress,” said Dody in Jakarta yesterday (2/4).

Dody explained that the 966,449 barrels per day production comprises 851,719 barrels of oil per day and 114,730 barrels of condensate per day.

“Oil production recently tended to decrease from year to year,” said Dody. Belanak Block (ConocoPhillips). For example, that which is targeted to be able to produce 19,000 barrels per day, actually only produces 12,000 barrels per day.

Currently BP Migas continues searching for fields which have large reserves. “Because new small-scale fields are only sufficient to cover production and is not yet able to impel the production amount,” said Dody.

However, according to BP Migas’ Planning Deputy, Achmad Lutfi, there will be additional oil production this year. The additional production includes from Ujung Pangkah Phase 2 (Hess) North Duri (Chevron), Blok Natuna (ConocoPhillips) and Sepanjang (PT Energi Mega Persada).

Earlier, oil observer Kurtubi predicted that the world’s oil price will go up to US$70 per barrel. The increase will happen within one week or two and will last for the coming six months at the minimum.

The effect of the oil price hike in Indonesia will be positive if seen from the point of view of state revenues in the oil and gas sector. “Oil and gas exports will obviously rise,” he said.

Nieke Indrietta
Jawawa.net: Indonesian Business and Investment News Aggregator