2005 oil output target my be mssed

2005 oil output target my be mssed

Indonesia's average oil production this year is estimated to miss the state budget target by some 4.4 percent at 1.075 million barrels per day (bpd), an oil official said on Tuesday.

"The state budget target of 1.125 million bpd cannot be achieved; at most, the average (oil production) will amount to 1.075 million bpd," Chairman of the country's oil and gas regulatory body BP Migas, Kardaya Warnika said on Tuesday.

Warnika said that in the first six months to June, Indonesia's oil output averaged 1.066 million bpd.

He attributed the lower-than-expected oil output to the decreasing oil reserves and also to the fact that some oil firms have been unable to meet their production targets for the year.

Indonesia's largest oil producer, PT Caltex Pacific Indonesia, is targeting an output of 485,000 bpd while actual production has been 480,000 bpd, he said.

Warnika said he expected the average oil output to improve to 1.075 million bpd by the end of this year on the back of new oil blocks starting operations, bringing an additional 17,000 bpd in output.

The additional oil output is expected from, among other new concessions, the Salawati oil block in Papua operated by the local unit of PetroChina, Warnika said. -- AFP