Tue, 09 Mar 2010

Jakarta (ANTARA News) - Oil observer Pri Agung Rakhmanto said that the government`s oil production target of 965,000 barrels per day (bpd) in the 2010 was unrealistic and needed revision.

"The target is too ambitious and is baseless," he said here on Monday.

Rakhmanto who is also director of ReforMiner Institute said that the government had better revise its oil production target in the 2010 revised budget with a realistic one, namely 950,000 bpd.

The government is planning to submit a 2010 revised state budget with an oil production of 965,000 bpd.

He said that the government might have set the target merely for reasons of sectoral "prestige."

"It could only be based on a political consideration, namely to create a higher economic growth figure or a bigger deficit so that it could add its debts," he said.

He said that on one side the government was pushing ahead for more oil production while on the other side it produced a lot of regulations which discouraged investment climate.

According to Rakhmanto, Law No. 22 / 2001 on Oil and Gas should be revised so that oil production could be raised.

The Upstream Oil Regulating Board (BP Migas) recorded that the average oil production in the January February 28, 2010 period, stood at 951,214 barrels per day.

The average production is far below the target at 956,000 bpd as set in the state budget.

In February alone, the production was 959,186 bpd while on February 28, the production reached 961,964 bpd, including 148,762 bpd of condensate.

PB Migas head R Priyono said if there was no disturbance, the production could reach 974,000 bpd.

A number of production disturbances were recorded with that of Kodeco which dropped 4,000 barrels per day, Cepu oil field only produced 13,700 of its target of 20,000 bpd and JOB Pertamina-Petrochina East Java declined to 3,000 bpd. (*)