Oil production first semester misses target

Upstream oil, gas regulatory body BPMIGAS said that the national average crude oil output in the first half of the year was below the target of 960,000 bpd set in the 2009 state budget.

As of July 1, the average oil output was 951,793 bpd or around 99.15 percent of the state budget's target, BPMIGAS chairman R. Priyono said on Wednesday.

There are several reasons that made the target missed. First, some fields have delayed their operation. The cepu block for instance was initially scheduled to stat production in January this year but it will only be able to produce in August this year. The Tangguh LNG plant has also delayed its production to July from May.

Production at West Java block owned by PT Pertamina has also been troubled by theft cases, while floods hit the fields operated by PT Chevron Pacific Indonesia, Priyono said.

Priyono is however optimistic that the state budget target could be met as Tangguh has started production and Cepu's production is imminent.

The Banyu Urip field of Cepu block is projected to produce 15,000 bpd as of end-2009. (godang)