BPMIGAS has high hopes for South Sumatra

Upstream authority BPMIGAS expects the operators of oil and gas blocks in South Sumatra to be able to meet this year?s production target and eventually help boost national output.

?BPMIGAS wants this year to be the turning point in our national oil and gas production, from 2011 where national output hit the lowest point,? said Akhmad Syakhroza, BPMIGAS Financial Deputy, during a visit trip to four operators at the province.

The four are Pertamina EP Region Sumatera, Medco E&P Rimau, ConocoPhillips Grissik and JOB Pertamina Talisman Jambi Merang.

Based on discussion with the four companies, Syakhroza revealed 3 major problems that could hamper oil and gas production this year, namely licensing process, land overlapping, and thefts of site equipments including pipes.

Syakhroza said BPMIGAS would help resolve those problems, including efforts to coordinate better with other agencies overseeing other industries.

On equipment theft issue, he commented: ?Some operators have tried to form a task force to help secure pipes for instance, but it has not given optimum results. If this cannot be resolved here, then we will take this matter up to the central level.?

Editing by Dadan Wijaksana