ChevronTexaco's oil output in RI falls

ChevronTexaco's oil output in RI falls

JAKARTA: ChevronTexaco Corp., the second- largest U.S. oil company, said its oil production in Indonesia declined by about 5 percent last year because the company hasn't explored in new areas to replace older fields in Sumatra.

The company plans to spend as much as US$300 million this year to stem a decline in its production after output fell to 507,000 barrels a day in 2004, said W. Yudiana Ardiwinata, president director of ChevronTexaco's unit, PT Caltex Pacific Indonesia.

The company expects its production to fall at a slower rate this year, he told reporters on Tuesday.

Caltex Pacific, the country's biggest oil producer, will inject chemicals into its fields to stem a production decline, Ardiwinata said. -- Bloomberg