BPMIGAS asked to use of EOR technology to boost production

Vice President Boediono has asked the Energy and Mineral Resources Ministry and upstream oil and gas regulator BPMIGAS to optimally use the enhanced oil recovery (EOR) technology in order to be able to meet the government?s oil production target.

In his address at the Indonesian Petroleum Association?s (IPA?s) 35th Convention and Exhibition in Jakarta on Wednesday, Boediono also asked both the ministry and the agency to prevent unplanned shutdowns in the country?s oil and gas production.

?The ministry and BPMIGAS should focus on the optimal use of EOR and how to reduce unplanned shutdown because it is a serious problem that should be coped with in order to be able to meet the production target,? he said.

A further decline in the oil production would bring a serious infliction on the state budget, which at present still heavily relies in oil and gas taxes, the vice president said. ?The government should therefore further encourage investment in oil and gas sector in order to increase production,? Boediono said.

He said that the government was also now focusing on efforts on how to further increase gas production and to provide fair prices for producers. ?The government is open to dialogues with producers on consumers related to gas supply and prices,? he added.

According to the vice president, the government is also encouraging the construction of LNG receiving terminals and floating storage re-gasification unit (FSRU) in order to settle infrastructure problem in the distribution of gas in the country.

He also supported the construction of an FSRU in the Jakarta bay which is expected to be able to begin operation in 2012, he added. (godang)