Pertamina expects oil output to increase to 206,000 barrels per day in 2008

State-owned oil and gas company Pertamina expects its crude oil output to rise to 206,000 barrels per day (bpd) in 2008 from the 144,000 bpd targeted for next year, The Jakarta Post quoting Pertamina?s president Ariffi Nawawi reported on Wednesday.

Pertamina also forecasts an increase in natural gas output, to 1.86 million cubic feet/day in 2008 from an expected 1.10 million cubic feet/day in 2004.

Currently, Indonesia's crude output is about 1.1 million b/d, lower than 1.317 million b/d the country is allowed to produce under the Organization of Petroleum Exporting Countries (OPEC) quota system.

Most of Indonesia's crude output is produced by foreign companies such as ChevronTexaco Corp., and Exxon Mobil Corp. that pay the government a portion of revenues in return for the right to operate in the country.

Ariffi added that the company also aimed to boost exploration so as to increase its reserves to 1.272 billion barrels in 2008 from a 1.104 billion barrel target in 2004.

Exploration in new crude oil fields has dried up since the 1997 economic crisis, leaving Indonesia with only about 10 years of proven reserves, compared with more than 100 years in some other countries like Saudi Arabia, and this is hurting the country?s output.

The company has said that it plans to invest US$5 billion within the next five years, with 70 percent of the investment going to the upstream business, which includes exploration.

The remaining 30 percent will go to the downstream business. (*)