BPMIGAS pushes northern Sumatra's PSCs to meet 2012 target
Monday, January 9 2012 - 03:20 AM WIB
Upstream Authority BPMIGAS has asked all production sharing contract (PSC) contractors in northern Sumatra to work harder in realizing their lifting target of 2012, saying that it is always ready to help them whenever necessary.
"We're always ready to help to ensure that the lifting target is achieved," said BPMIGAS Deputy of Legal and Evaluation, Lambok Hutauruk, who visited PSC contractors, including PT Chevron Pacific Indonesia (PT CPI), in northern Sumatra last week.
He pointed out that the government had targeted oil production this year at 950 thousand barrels per day and all contractors should work harder to realize it.
"Our target of production this year is 950 MBOPD. The realization last year was only 905 MBOPD. That means there is a deficit of 45 MBOPD. We should work together to achieve the production target," he said in Rumbai, Riau, where he visited PT CPI.
He said that although PT CPI's target at 330 MBOPD this year had been approved, BPMIGAS hoped that PT CPI will exceed that set target.
"Your production (PT CPI's) represents more than 40 percent of the total Indonesian production. Just a small hiccup in the process would cause a significant impact," he added.
He cited, as an example, the incident of PT TGI's gas pipe, that funnels gas from Corridor to CPI, which broke in October 2010 and caused the production of PT CPI to drop by 50 MBOPD. "It has been a year since, but its impact still lingers until now. But we will monitor it closely together," he said.
He appreciated PT CPI in conducting the enhanced oil recovery (EOR) surfactant project in Minas. "We hope that other contractors will do the same in their fields," he said.
Lambok also presented the same message during his visits to PT BSP-Pertamina Hulu, which jointly operate the CPP Block and Kondur Petroleum SA, which manages Malacca Strait Block.
During the visit to northern Sumatra, he found classic problems facing the contractors there. The problems are generally concerned with the long and expensive process of licensing from local administrations, overlapping of land areas in their concessions, forestry issues, and conflicts with local people.
Editing by Benget Besalicto Tnb.