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Nationwide production of crude oil may only reach half of the government’s target this year if a new environmental standard on water quality is implemented without modifications, Evita Legowo, director general of oil and gas at the Energy Ministry, said on Wednesday.

The new regulation, set to take effect in April, could reduce total oil output to less than 500,000 barrels per day this year, well short of the 965,000 barrel a day target, she said.

The regulation would require oil and gas contractors to reduce the maximum temperature of wastewater in drilling from 45 degrees Celsius to 40 degrees. The higher temperature is considered a pollutant because it kills many aquatic organisms.

“Should this regulation be implemented, contractors won’t be able to use the steam-flood mechanism any longer and about 50 percent of this year’s output target may not be realized,” Evita said.

Because most of the country’s oil fields are mature, contractors implement enhanced oil recovery (EOR) methods, including the steam-flood method, to maximize output. The method, which results in wastewater temperatures of about 45 degrees Celsius, involves injecting steam into the oil reservoir.

Chevron began using the method in Indonesia in 1985 at the onshore Duri field and said it had enabled it to triple output at the field.

The new regulation would also require oil producers to invest in costly new equipment, and may deter investment in the sector, Evita said.

Budi Indianto, director of operations at upstream oil and gas regulator BPMigas, said contractors would need at least three years to install equipment needed to adhere to the regulation.

“If it is implemented, BPMigas will propose giving them two or three years to prepare. It will require a big investment,” he said.

However, Rasio Ridho Sani, assistant to the deputy environment minister, played down the concerns. “We will synchronize the regulation so it won’t deter investment, but also ensure better environmental management,” Rasio said.