Oil lifting of 945,000 bpd approved

Despite earlier objection from some lawmakers, the House of Representatives Commission VII on energy finally approved on Thursday the government?s proposal to lower the country?s oil production target in the 2011 state budget to 945,000 bpd from the original target of 970,000 bpd.

The approval came following earlier statement from various government officials and experts that the country?s oil production has been on a declining trend due to a number of lingering problems, and that the 970,000 bpd production target was no longer realistic.

Lawmaker Dito Ganinduto said the more realistic oil lifting target is actually 920,000 bpd considering that upstream oil and regulator BPMIGAS?s oil production estimate is only around 888,000 bpd.

The Commission VII has also approved a proposed revision to the assumption of the Indonesia crude price (ICP) of US$95 per barrel in the revised 2011 state budget from $80 per barrel in line with the upward trend in crude oil price in the world market.(*)