Caltex to increase oil output by 25,000 bpd<\/p>\n
JAKARTA (JP): The country's largest oil producer PT Caltex
\nPacific Indonesia planned to increase its crude oil output by at
\nleast 25,000 barrels per day (bpd) to 795,000 bpd next year,
\ncompany president Baihaki H. Hakim said yesterday.<\/p>\n
Baihaki said the output increase would be made through the
\napplication of more advanced enhanced oil recovery technology in
\nits 10 largest oil fields, including Duri and Minas.<\/p>\n
\"Caltex is known to be the leader in this technology,\" Baihaki
\nsaid on the sidelines of the ceremony to sign the production
\nsharing contracts and technical operation contracts between the
\nstate-owned oil and gas company Pertamina and eight new
\ninvestors.<\/p>\n
Caltex, which is jointly owned by the giant United States oil
\ncompanies Chevron Corp. and Texaco Inc., currently produces crude
\noil from four blocks in Riau -- the Pakanbaru Coastal Plains,
\nRokan, Mount Front Kuantan and Siak.<\/p>\n
The company accounts for 45 percent of the country's total oil
\noutput with a production capacity of 770,100 bpd.<\/p>\n
Baihaki said the company's program to increase its output
\ncomplements the country's plan to meet the new oil output quota
\nallocated by the Organization of Petroleum Exporting Countries
\n(OPEC).<\/p>\n
OPEC in its recent ministerial conference in Jakarta increased
\nall of its member countries' output quotas, allowing Indonesia's
\noil supply to rise by 9.5 percent to 1.456 million bpd for the
\nfirst half of next year.<\/p>\n
\"As a matter of fact, we had planned to increase our output
\nbefore OPEC decided on the quota increase,\" Baihaki said.<\/p>\n
Retail<\/p>\n
Baihaki added that Caltex was currently undertaking a large-
\nscale promotion of the company's new five-pointed-star logo which
\nwas introduced three years ago.<\/p>\n
Thousands of billboards carrying the logo have been erected at
\nstrategic locations throughout the country, raising speculation
\nover whether Caltex is planning to expand beyond the oil
\nbusiness.<\/p>\n
Baihaki admitted the large-scale logo promotion was intended
\nto create brand-name awareness among the public as part of the
\ncompany's preparation to enter the retail business in oil
\nproducts.<\/p>\n
He said the company had started making such preparations after
\nthe government signaled that it would open the downstream sector
\nof the oil industry to private businesses in the near future,
\nwhich has thus far been monopolized by Pertamina.<\/p>\n
Indonesia and other members of the Association of Southeast
\nAsian Nations (ASEAN) has agreed to open the downstream industry
\nfor oil products to the private sector by 2003 as part of the
\nimplementation of the ASEAN free trade area.<\/p>\n
\"In the future, you will see shopping centers near gas
\nstations where we'll also sell our products,\" Baihaki said. He
\nclarified, however, that Caltex would not enter any other sector
\nso that it could focus on oil products.<\/p>\n
Baihaki said Caltex was not interested in developing private
\nrefineries in Indonesia since it currently operated several
\nrefineries in Thailand and Singapore.<\/p>\n
\"There is currently overproduction in the Southeast Asian
\nregion,\" Baihaki said. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/caltex-to-increase-oil-output-by-25000-bpd-1447893297",
"image": ""
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"sponsor_url": "https:\/\/okusiassociates.com"
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