Oil, gas firms continue to face security problem

Some eight oil and gas firms operating in Indonesia have continued to face security problem until early this month, of which four of them suffered a combined loss of US$726.2 million, according to Minister of Energy and Mineral Resources Purnomo Yusgiantoro.

He said last week that with the remaining security problem, the country?s oil production would only increase starting 2003.

Purnomo said oil production in 2002 would only reach 1.23 million barrel per day, a decline of 200 thousand bpd compared to this year?s level.

The eight companies continue to suffer security problem include Amerada Hess, BP Indonesia, Caltex Pacific Indonesia, ExxonMobil Oil Indonesia, Kalrez Petroleum, Santa Fe Energy, TotalFinaElf Indonesia, and Vico Indonesia.

BP suffered a loss of $12.7 million, Caltex Pacific Indonesia $200 million, ExxonMobil Indonesia $500 million, and TotalFinaElf Indonesia $13,500.

The largest production decline was contributed by Caltex.

Purnomo said that the decline in BP Indonesia gas production in West Java due to the stealing of remote platform was directly felt by the local community including businesses was they were forced to lower gas consumption.

Purnomo said that the production decline had actually started this year as evident by the inability to meet OPEC production target of 1.4 million bpd.

The country?s average oil production during the past few months was only around 1.17 million bpd or 96 percent of OPEC quota.

Purnomo said that the security problem included in the form of blockade, arms threat, stealing of facility and mass demonstration.

He said that the government continued to improve security condition so that by 2003, when major oil fields started to produce there would no longer be a problem(Arry).