The government is pinning its hopes on the development of 14 new oil fields so as to meet next year's oil production target of 1.034 million barrels per day, slightly higher than this year's estimate of 1 million bpd, an official says.
Abdul Muin, Upstream Oil and Gas Regulatory Agency (BP Migas) deputy chairman, said Tuesday that the government was optimistic it would be able to reach its target as 14 new fields, including Banyu Urip in the Cepu block in East Java, were expected to come on stream sometime next year.
"We hope that the Banyu Urip will start production next year," Abdul said during a hearing with the House of Representatives to discuss the government's oil output assumptions in the draft 2008 budget.
Other fields that were also expected to commence production, Abdul said, included a number of fields owned by big oil companies, such as U.S.-based oil major Chevron, French giant Total E&P, and state-owned oil and gas firm Pertamina.
In the assumptions presented to the lawmakers, the government stated that Chevron's oil production would reach 376,300 bpd next year, including additional output from its four new fields -- Duri, Balam South, Telissa WF and Kota Batak.
As from Pertamina, its production is estimated to increase to 135,600 bpd next year including a contribution from its new Pondok Tengah field.
The other fields are Medco's Fariz, Star Energy's Lukah I-X, PetroChina's North East AJA, Talisman's South Guruh and Hess's Gading Island and Sungai Kenawang.
Energy and Mineral Resources Minister Purnomo Yusgiantoro said that the additional oil output from the new fields was expected to increase the state's revenue from the oil and gas sector by Rp 6.9 trillion to Rp 112.3 trillion in 2008.
Commenting on the government's explanations, senior legislator Sony Keraf said he had doubts about the government target given the steady decline in oil output over the last five years.
Sony cited forecasts that this year's oil production would only reach around 950,000 bpd, compared with the government's target of 1 million bpd.