BPMigas Expects to Be Short of Oil Output Target
In BPMigas’ latest update on the country’s oil production, there is more bad news than good.
State oil and gas regulator BPMigas forecast that oil production will reach 870,000 barrels per day this year, which is much lower than target set by the state budget.
The revised 2012 state budget set oil production at 930,000 bpd. The country’s oil production was 902,000 bpd last year.
“The amount of oil production was 867,080 bpd in October and will only reach 870,000 bpd at the end of this year,” Antara reported, citing R. Priyono, head of BPMigas on Wednesday.
Priyono said that the disruption at several oil wells were the reason for the ower productivity. He said that unplanned shutdowns from almost all of the country’s oil producers caused the amount to decrease by 10,000 bpd.
M ajor oil producers in Indonesia are Chevron Pacific Indonesia, Pertamina EP, Total EP Indonesie and ConocoPhillips.
Priyono said that Chevron is estimated to produce 343,212 bpd this year, while Pertamina EP figures to produce 127,889 bpd.
Total EP Indonesie estimated 66,400 bpd, and ConocoPhillips Indonesia was at 44,306 bpd.
Indonesia has been trying to boost oil production to one million barrels per day since it left OPEC in 2008.
The nation’s oil output reached 902,000 bpd last year, less than the 945,000 bpd that had been target in the state budget.
Oil production hit a peak of 1.6 million bpd in 1995 as part of the so-called oil bonanza era.
Reserves at many Indonesian oil fields are declining and aging equipment has made operations less efficient.
In a statement posted on the BPMigas website, the agency expects to bring in $34.9 billion in oil and gas revenue this year, more than the $33.48 billion that is stated in the state budget.
BPMigas collected $35.8 billion in revenue from oil and gas last year, 10 percent more than what was set in the state budget, the website stated.
In 2010, it made $26.49 billion in oil and gas revenues, higher than the $26.06 billion set in the state budget.
Additional reporting from Antara