Govt urges PSCs to speed up new production

The government will ask some crude oil companies operating in the country to speed up production at new fields in order to meet its target for daily average output of 1.072 million barrels/day this year, a BPMigas senior official said Friday.

Trijana Kartoatmodjo, deputy of operations for the upstream oil and gas regulating body BPMigas, told reporters Indonesia's daily crude oil output averaged 1.048 million BPD during the first six months of the year.

Trijana said BPMigas will ask PetroChina Co. to accelerate oil production in the West Batara, West Piano in Jambi and Northeast Salawati fields in Papua, Total S.A. in the Tambora field in East Kalimantan, PT Caltex Pacific Indonesia in the Likan and Kelok fields, ConocoPhillips in the Belanak field offshore Natuna, Kufpec's Oseil second phase development in Seram and Medco's Kaji field in South Sumatra.

"BPMigas will cut POD and AFE approval red tape to accelarate teh development," he said.

Indonesia's crude output has been declining steadily over the past few years because reserves are depleting after many years of production and legal uncertainties are hampering new investment.

For the first time ever, Indonesia became a net crude oil importer in March. But the government said the situation would only be temporary.(godang)