Govt vows to boost oil output by 300,000 bpd<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government reiterated its pledge on Tuesday to boost the
\ncountry's oil output by 300,000 barrels per day (bpd) by 2008-
\n2009 to meet increasing demand on the domestic market.<\/p>\n
Minister of Energy and Mineral Resources Purnomo Yusgiantoro
\nsaid on Tuesday that the efforts to increase production would
\ninclude optimizing the exploitation of aging oil fields and the
\nenhancement of oil production in marginal fields through the
\nimplementation of enhanced oil recovery and other advanced
\ntechnology.<\/p>\n
Purnomo was speaking at the opening of the three-day Asia
\nPacific Oil and Gas Exhibition and Conference, which is being
\nsponsored by the Society of Petroleum Engineers, Society of
\nIndonesian Petroleum Engineers and the Oil and Gas Regulatory
\nImplementing Body (BP Migas).<\/p>\n
The condition of existing oil fields showed that the rate of
\nnatural depletion with no additional work was around 10 percent
\nto 15 percent per year.<\/p>\n
\"From the economic crisis in 1997 until 2000, new investment
\ndeclined, thereby reducing the level of oil output by around 10
\npercent to 15 percent per year, so that today it stands at 1.1
\nmillion bpd,\" Purnomo told the audience at the three-day event,
\nwhich is being attended by 45 local and international companies.<\/p>\n
\"Seventy percent of today's production comes from mature oil
\nfields, of which around 55 percent are located in Central
\nSumatra.\"<\/p>\n
\"To increase the supply of oil, we need to advance and
\ninnovate in the technology field to extend the oil reserves and
\nto discover new oil sources in remote areas and deep seas,\" he
\naid, adding that the domestic demand for oil was increasing by
\naround 7 percent every year.<\/p>\n
Purnomo explained that his ministry and BP Migas have been
\npreparing two packages of incentives aimed at encouraging
\ninvestors to put their money into oil prospecting and production
\nin the country.<\/p>\n
One of the packages was aimed at encouraging investors to
\ndevelop 30 to 50 marginal oil fields, which were now producing
\nonly between 5,000 bpd and 7,000 bpd. Currently, there are around
\n50 marginal fields nationwide, according to BP Migas.<\/p>\n
This package will possibly help increase oil production by as
\nmuch as 50,000 bpd.<\/p>\n
The other incentive package was aimed at improving the
\nexploitation of old oil fields, which have suffered tremendous
\ndeclines in production.<\/p>\n
BP Migas deputy head Kardaya Warnika explained that
\nmultinational companies -- including Caltex, Medco, China
\nNational Offshore Oil Corp. (CNOOC) and Unocal -- had submitted
\nlists of aging oil fields, mostly located in onshore areas, to BP
\nMigas to avail of the second incentive package. These companies
\nowned between 20 and 30 oil fields here. (001)<\/p>",
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