BP Migas optimistic RI can produce 1.125 million bpd of oil in 2005

The oil and gas sector?s regulating body BP Migas is optimistic that the country?s oil production will meet the 2005 state budget target of 1.125 million barrels per day (bpd), the Investor Daily Indonesia newspaper reported in its Monday edition.

This optimism is based on the fact that Indonesia had added several new oil and gas blocks to boost the production.

?We have already discussed internally about the projection of 1.125 million barrels per day (oil production). It includes condensate. We expect the oil and gas blocks, which we have developed so far, would contribute to the 2005 State Budget,? BP Migas chief Rachmat Sudibyo said over the weekend in Jakarta.

As per the BP Migas? records, the government had approved 35 new oil and gas blocks with US$12.9 billion investment during the period from July 2002 to July 2004.

Rachmat said several projects are expected to begin their production in 2005. Among the oil and gas blocks that will start production in 2005 are KE40 and KE-30 at West Madura block, Oyong at Sampang block and Sapi oil field at Balikpapan block. Each block has 3.36 million stock tank barrels (MMSTB), 3 MMSTB, 6.1 MMSTB and 0.54 MMSTB of oil reserves.

Currently, Indonesia is able to produce on average 1.072 million bpd, below the 2004 State Budget target of 1.150 million bpd of oil. (*)