Caltex vows to continue Minas field recovery project

Indonesia’s top oil producer PT Caltex Pacific Indonesia (CPI) will go ahead with the Minas’ recovery project, development of new water flood area at Bekasap, South Balam in Bangko and Kotabatak oilfield to get additional oil reserves to continue its operations Indonesia, Bisnis Indonesia newspaper reported on Friday.

Caltex’s corporate manager Harry Bustaman said the business strategy of U.S. oil giant ChevronTexaco through its subsidiary PT CPI will not change in the sense it wants to continue its operations with high productivity.

“We have long experience (in operations) and we need expertise to manage risks in order to maintain the objective of our long-term investment, Harry told Bisnis through e-mail.

The main objective of CPI, according to Harry, would be not only to maintain the existing contracts but also to increase the production volume. With its present average of production of around 550,000-570,000 barrel per day (bpd), which is almost half of Indonesia’s total output of 1.2 million bpd. CPI is the country’s biggest oil producer.

CPI, which has several oil blocks on Sumatra island and a huge oil complex in Riau province, said recently that it was seeking to maintain crude production at around 520,000 bpd in 2004, similar to this year's daily production target.

With the use of more advanced technology, Caltex is optimistic that it can maintain the present level of production despite the fast depleting oil reserves.

The company's production peaked at one million barrels per day in May 1959 but it continued to decline in the following years. The company has now used more advanced drilling technology to enhance the oil drilling capacity. (*)