Pertamina seeks to cut production costs to US$4.9 per barrel

State oil and gas company Pertamina is seeking to cut its oil and gas production cost to an average US$4.9 per barrel this year, from an average $5 per barrel last year.

New upstream director Iin Arifin Takhyan, in a coordinating meeting Wednesday with 150 officials of the directorate from across the country, called on all the directorate officials to work harder to meet the target, according to Pertamina's statement.

Iin said the production cost of Pertamina?s upstream activities had risen to $5 per barrel from below $5 in the 1999/2000 and 1998/1999 following an increase in the repair works.

He noted however that Pertamina?s Karang Ampel, Rantau and Prabumulih oil fields had the fourth, fifth and sixth lowest cost of production among all oil fields across the country.

Iin also said the new oil and gas discovery made by the directorate dropped to $0.14 per barrel oil equivalent in value in 2000 from $0.83 per barrel oil equivalent in 1999/2000.

The 1999/2000 discovery was the highest ever made by the directorate, he said, adding that the new discoveries were made among others in Bernai/Prabumulih, Rengancondong/Jambi, Sucil/Tuban, Kedungtuban/Cepu and Melandong/West Java.

The directorate?s oil output has been staying less than 50,000 barrels per day (BPD) over the past five years but the output was expected to increase 54,676 next year and 57,576 in 2003, according to Iin.

Its gas output has thus never exceeded the 750 million cubic feet per day (MMCFD) level but, Iin said, the gas output is projected to increase to 816 MMCFD next year and 859 MMCFD in 2003. (Bodega)