Govt?s 2009 oil lifting target fixed at 960,000 bpd

The House of Representatives and the government have agreed to set the oil lifting (net production) target in the 2009 state budget at 960,000 barrels per day (bpd).

The target was slightly higher than the 950,000 bpd proposed by the government, but it was lower than the 977,000 bpd stated in the 2008 state budget.

Harry Azhar Azis, the deputy chairman of the House budgetary commission, said that the target included the 50,000 bpd currently used by Chevron in its oil-for-gas swap deal with ConocoPhillips.

Syahrial Loetan, the secretary of the National Development Planning Board (Bappenas), said that the government would have to work an extra hard to meet the higher oil lifting target given the gloomy outlook in the country?s oil production.

?With an increase in the oil lifting target by 10,000 bpd, the target would be more difficult to achieve,? he said during the deliberation of the proposed state budget on Wednesday.

During earlier hearing, a number of the country?s major oil producers including Chevron, ExxonMobil and ConocoPhillips said that they would lower their production target in 2009 due to the decline in their reserves and the lengthy bureaucratic procedures in obtaining exploration approvals. (*)