BPMIGAS warns govt about potential risks of oil, gas production in 2012
Friday, February 3 2012 - 08:34 AM WIB
Upstream authority BPMIGAS has warned the government about potential threats that may disrupt oil and gas production in 2012 and therefore lead to below-than-target production.
The government?s 2012 State Budget has set oil production target to 950,000 barrels of oil per day. BPMIGAS sets lower target of 930,000 bopd, while production sharing contractors (PSCs) set even lower target of 891,000 bopd.
The government?s State Budget 2012 sets gas production target at 7,655 mmscfd, the same as BPMIGAS' target of 7,655 mmscfd but higher than PSCs' target of 7,549 mmscfd. In total, the government sets oil and gas production target at 2,274 boepd, while BPMIGAS and PSCs set lower target of 2,254 boepd and 2,197 boepd respectively.
BPMIGAS said in a presentation material delivered to the House Thursday that among the potential threats is the decision by the Aceh administration with regard to Pase PSC operated by Australian company Triangle Energy. Triangle is seeking for renewal of its Pase block for 20 years, which has not been granted. The oil and gas authority has also warned the government over the potential termination of exploration activities of Petronas, Talisman, Renco and Senca Energy in the region.
BPMIGAS said oil and gas companies face different problems. PT Sele Raya, as a case in point, is facing a threat of revocation of permit to transport its crude oil via land transporation means by Musi Rawaso Regency. CNOOC production is disrupted due to fire on its Floating Storage and Offloading (FSO) Lentera Bangsa in September last year. The company is currently looking to replace the FSO.
Total E&P Indonesie is dealing with an issue of a ?significant declining? output of reservoir in subsurface. Meanwhile, Pertamina EP has not been able to apply the enhanced oil recovery technology to the optimum level due to lack of capital.
Editing by Roffie Kurniawan