Indonesia oil production still below target

Indonesia?s oil production reached an average of 952,083 barrels per day (bpd) in the first five months of this year, below the target of 960,000 bpd as stated in the 2009 state budget, according to the latest data issued by upstream oil and gas regulator BPMIGAS.

R. Priyono, the head of BPMIGAS said in Jakarta Friday that the national oil production was still below the state budget target because production of several oil producers were still below the expectation.

?Cepu oil block, for example, has not begun production due to a difficulty to obtain a required permit from the local regent. The production from the oil block has been included in the total production target stated in the budget,? he said.

The average production during the first half of this month was only 951,962 bpd, although in certain days such as on June 17, the total production reached 960,051 bpd, he said. ?During the last three days, the national oil production also reached the target of 960,000 bpd,? he added.

Although the national oil production was still below the target, the production of state owned oil and gas company Pertamina?s production unit Pertamina EP reached 128,618 bpd on June 17, exceeding the company?s target by 3,118. The production on June was the highest level ever recorded by the company.

Pertamina EP?s spokesman Mohammad Harun said that the higher than expected production could be achieved thanks to an increase in production of the company?s several production units.

The exploration and production unit for eastern Indonesia produced about 5,951 bpd on June 17, 119 percent exceeding the target, while the production at Limau production unit reached 12,250 bpd, also 119 percent exceeding the target.

Pertamina EP Java region managed to maintain production at 25,503 bpd, Sumatera region at 18,241 bpd, while the Sukowati fields production reached 24,718 bpd.

Pertamina EP's gas production reached 1,033 million standard cubic feet per day, which is the largest gas producer for domestic market. Around 28% of the gas output went to state gas distribution company PGN, 22% to meet demand from industries, 18% for fertilizer industries, another 18% for power plants, and the remaining 14% for Pertamina refineries and own use.

Production of Pertamina EP has showed a persistent increase during the last two years. The company?s average production increased to 116,600 bpd last year from 110,330 bpd in 2007. This year, the company expects the average production will further increase to 125,500 bpd. (godang/bernard)