Govt upbeat 2011 oil production can be achieved

The government is upbeat the target to produce 970,000 barrels of oil per day (bpd) next year will be achieved, albeit with a change in the focus of production activities, a senior official has said.

Wimpy S. Tjetjep, deputy to the coordinating minister for economy, said in Jakarta on Wednesday that the government would adopt a new strategy in order to be able to meet the production target.

The enhanced oil recovery (EOR) technology would, for example, be used in more old oil in order to increase their production, he said, adding that the operation of new oil fields such as the Banyu Urip field in the Cepu block, the Abadi field in the Masela block and the Donggi Senoro gas field in Central Sulawesi should also be sped up.

In addition to the change in the strategy in the operation of the oil fields, the government would also review the existing policy in order to remove the barriers faced by oil and gas companies in conducting their operations, Wimpy said in a seminar on 2011 energy outlook.

"Regulation on cost recovery and those related to income tax imposed on oil and gas producers would be soon issued,? he said, adding that such regulations were needed to ensure certainty in the oil and gas production. (*)