BPMIGAS: Actual oil production far below target

Upstream authority BPMIGAS recorded that actual oil production last year reached only 903,441 barrels of oil per day, far below the government?s revised target of 945,000 BOPD. Oil and gas production stood at 2.4 million barrels of oil equivalent per day (BOEPD), Kompas daily reported, citing BPMIGAS Chairman R. Priyono.

The actual oil production confirmed earlier report that last year?s actual oil production reached between 900,000 and 905,000 BPD due to temporary shutdown and turn-around works in a number of blocks.

BPMIGAS recorded that total revenues from oil and gas upstream sector last year reached US$34.4 billion, or 29.8 percent higher than target of $29.8 billion, due to higher oil price.

Priyono said the other problem that hampered oil production last year was external cause, such as fire at floating storage and offloading (FSO) Lentera Bangsa operated by CNOOC SES.

As for 2012 target, Priyono said he will ask the Energy and Mineral Resources Minister Jero Wacik to speed up decision on oil and gas blocks contract extensions so that the operators can make investment decision in advance.

A number of oil and gas blocks will expire in the next few years. Priyono views that the main consideration in extending a contract is whether the operator or the new operator will be able to raise production or not.

?Do we want (blocks) are controlled by national companies or production increase? The interest of the State or Pertamina?,? he said in response to calls by some House members and observers that oil and gas blocks that will expire should not be extended and be given to Pertamina. (*)

Editing by Roffie Kurniawan