Oil production target for this year too high: BPMIGAS

Upstream oil and gas regulator BPMIGAS is pessimistic that the government?s oil production target could be achieved, saying that technical problems and the depletion of production in aging oil fields could hamper efforts to meet the production target.

Speaking during a hearing with the House of Representatives on Monday, BPMIGAS? chief R. Priyono said that the target to produce 965,000 barrels per day (bpd) this year was too high.

The target to produce 965,000 bpd is stated in the 2010 state budget. During the hearing, Priyono proposed to lower the production target to 917,000 bpd in the revised budget which is currently being discussed by the House members and the government.

The BPMIGAS chief also asked the House members to use a range instead of a single figure in stating the production target because production in a number of oil fields is fluctuating from time to time.

?The production target should for example be stated at a range between 917,000 and 965,000 bpd,? he added.

BPMIGAS data reveals five production sharing contractors that will help it meet the 917,000 bpd target are PT Chevron Pacific Indonesia (CPI) with an output of 351,730 bpd, PT Pertamina EP (121,680 bpd), Total Indonesie EP (88,370 bpd), ConocoPhillips Block B (Natuna) (51,330 bpd) and CNOOC SES (39,930 bpd).

To meet the target of 965,000 bpd, CPI will have to produce 370,000 bpd, Pertamina EP 128,000 bpd, Total Indonesie EP 92,960 bpd, ConocoPhillips Block B (Natuna) 54,000 bpd and CNOOC SES 42,000 bpd.

As of April, the average national oil production is at 955,980 bpd, lower than the state budget target of 965,000 bpd. Last year, the national oil production also missed the target. The 2009 target for oil production was 960,000 bpd, but in reality, the output was only 955,980 bpd. (godang)