Indonesia’s oil production decreased by 9.5 percent in 2003

Indonesia’s oil output in 2003 dropped by 9.5 percent to 1.01 million barrels per day (bpd) from 1.12 million bpd a year before, Bisnis Indonesia newspaper reported in its Wednesday edition.

According to the data received by the paper, the contractors which operate oil and gas blocks under production sharing contracts and joint operating body produced 930,329 bpd of crude and the state –owned oil and gas company PT Pertamina’s output was 82,034 bpd in 2003.

In 2002, the foreign contractors’ average crude output was 1.07 million bpd where as Pertamina produced 40,000 bpd.

Oil and gas upstream activities regulating agency’s (BPMIGAS) deputy R.S. Trijana Kartoatmojo confirmed the news about drop in country’s oil production.

“The drop in production occurred naturally. We, in fact, tried to increase it but we can’t fight against nature. For example, the water inside the well (oil well) is limited, so it is very difficult to increase oil (production),” Trijana told Bisnis on Tuesday in Jakarta.

However, according to Trijana, all the contractors must increase their exploration activities to find new oil and gas fields. At least, their new findings of oil reserves are expected to be enough to maintain the current production level.

Trijana added that the total oil reserves including the potential reserves during the last 10 years had reached 9.74 billion barrels– proven reserves of 4.72 billion barrels and potential reserves of 5.02 billion barrels—of oil.

The drop in oil production during the last few years can be understood because most of the oil wells are too old. Therefore, it would be difficult to raise the production.

Indonesia’s biggest oil producer PT Caltex Pacific Indonesia, for example, produced 575,500 bpd in 2002 and its average production last year dropped to 494,838 bpd.

The Chinese contractors CNOOC and PetroChina also faced the same fate. The CNOOC’s output dropped to 94, 873 bpd in 2003 from 115,000 bpd in 2002. PetroChina‘s output fell to 25,978 bpd in 2003 from 42,400 bpd in 2002.

Surprisingly, Pertamina’s production has been on the rise. It’s production went up to 82,034 bpd in 2003 from 40,000bpd in 2002. PT Bumi Siak Pusako – a company jointly operated by Riau provincial administration and Pertamina—also enjoyed an increase in its production. It was able to produce 31.982 barrel in 2003 in compare to 13,900 bps in 2002.

Over all, the oil production at the national level has been declining since 1996. For example, Indonesia produced 1.42 million bpd of crude in 1996 and this dropped to 1.01 million bpd in 2003. (*)