Bintang Mitra projects higher oil production this year

PT Bintang Mitra Semestaraya Tbk (BMSR), which engages in the distribution of chemical products as well as oil exploration and production, expects an increase in oil output this year following the commencement of production activities at the company?s new oil field in Pendopo, South Sumatra, Kontan daily reported on Saturday.

BMSR has recently kicked off the production of the Pendopo field with an output rate of between 150 and 300 barrels per day (bpd).

?In addition, this year we will start drilling new wells on the field which has oil reserves (estimation) of about 3 million barrels,? the company?s President Director Welly Thomas said, adding that at present, BMSR operates six oil wells and expects the production to increase to 450 bpd this year.

The company expects that the higher oil production would propel total sales higher by 11 percent to Rp 1.8 trillion this year from Rp 1.62 trillion in 2011.

In 2011, chemical sales contributed 80 percent to the company?s total sales while oil business contributed the other 20 percent.

In the last four years, BSMR?s financial performance has been in the red. In 2011, the company suffered loss of Rp 7.17 billion, down from Rp 56.91 billion in 2010. In the first quarter of this year, the company posted loss of Rp 7.37 billion. (*)