Oil production can reach 1.3 million barrel per day: KADIN

Indonesian Chmabers of Commerce and Industry (KADIN) is optimistic that Indonesia’s oil and gas production will increase to 1.3 million barrels per day in the next 10 years, the Kompas newspaper reported in its Tuesday edition.

The production level has now dropped to 1 million barrels per day due to natural reasons and lack of new investment in the sector amid various uncertainties. In the coming next five years, the production level can reach between 1.1 to 1.2 million barrels per day, Kadin’s vice chairman for energy and natural resources Dito Ganinduto in Jakarta on Monday.

Dito said the government must take several steps to increase the production. It must find new oil and gas reserves, optimalization of the marginal oil fields to increase the production, to re-manage the aging oil fields and speed up the production process at the Cepu oil and gas block.

In order to maintain the current production level, the government must take steps to attract new investors and increase the exploration activities at on and offshore.

While mentioning the role of KADIN, Dito said there are so many opportunities in 2005 in the mining, energy and power sectors. Especially in the upstream sector, it is very clear that the government wants to increase the production and give incentives. "That’s very attractive."(*)