TEMPO Interactive, Jakarta: The Energy and Mineral Resources Department analyzed the national oil production decline. Every year there is a production decrease of between five and ten percent.
The Director General of Oil and Natural Gas, Luluk Sumiarso, said based on the analysis, most oil production is from mature fields. Analysis, he said, is still being carried out because this regards many institutions and oil contractors including the Upstream Oil and Natural Gas Executing Body. “We will see what the problem is and the follow-ups,” he told Tempo.
According to Luluk, the rate of oil production from mature fields is not balanced with new fields production. “There haven’t been any new fields found with large reserves,” he said.
In addition, oil price hike and the rig rent price is expensive. Another impediment are the matters of land acquisition, advanced technology application such as those that enhance oil recovery, machine technology and a shortage of experts. “Many local experts go abroad,” said Luluk.
The quality of data on working areas on offer, said Luluk, is also low. With this low quality data it is difficult to attract major investors. “So general surveys need to be made better, more intense, so that investors are better. If the data is small , only small investors will come,” he said.
As already reported, since five years ago, national oil production has never undergone an increase. In 2002, oil production was 1.252 million barrels per day. However, the number continued descending to 1.007 million barrels per day by the end of 2006.
Director of Downstream Oil and Gas Management at the Energy Department, Erie Soedarmo, explained that crude oil production from all refineries is around 1.04 million barrels per day. Out of that number, after being processed, only 700 barrels of fuel oil per day results. “However, fuel oil demand is 1.3 million barrels per day. That means the remainder must be imported,” he told Tempo.