Realized oil production slightly above the target this year
Wednesday, December 24 2008 - 02:19 AM WIB
Speaking in a year-end briefing, BPMIGAS chairman R. Priyono said that the total crude oil lifting (net production) in 2008 could reach 988,000 bpd if the amount included the crude oil inventory kept by oil producers.
The proven oil reserves, he said, fell slightly to 3.7 billion barrels this year from 3.98 billion barrels in 2007, while the potential reserves slightly rose to 4.5 billion barrels from 4.3 billion barrels.
He hoped that the oil production would still be able to meet the government?s target of 960,000 bpd in 2009 despite the estimated drop in the production of Chevron Pacific Indonesia, the country?s largest producer.
Although, there would be a significant decline in the production of Chevron, there would be an increase in the production from newly developed oil fields such as Banyu Urip field in Cepu Block.
According to Priyono, the gross revenues from oil and gas production reached a total of US$ 45.6 billion this year, 66 percent of the amount or about $30.3 billion went to the state coffer. For a comparison, the gross revenue form oil and gas reached $38.7 billion in 2007 and the government received $23.7 billion or 61 percent of the total.
He said that the total spending for exploration and production activities reached a total of $8.65 billion as of October this year, still well below the initial target of $14.4 billion for the entire year. In 2007, the spending for exploration and production reached $10.7 billion from target of $11.1 billion.
Priyono said that next year, the spending is expected to reach $12.9 billion. Of the total spending, $3.7 billion is allocated for the drilling of 1,273 wells, $2.7 billion for the construction of production facilities, $4.7 billion for production operations, $1.6 billion for administrative affairs. (Godang/bernard)