Indonesia expects to meet new OPEC quota

Indonesia expects to meet new OPEC quota

VIENNA (Agencies): Indonesia said on Thursday its new OPEC crude production quota of 1.307 million barrels per day (bpd) was a "realistic" target despite delays to several projects because of civil unrest and labor disputes.

Indonesia, Asia's only member of the Organization of the Petroleum Exporting Countries, is currently pumping at a rate of about 1.28 million bpd, said Energy and Mines Minister Purnomo Yusgiantoro.

"Our new OPEC quota of 1.3 million bpd is a realistic target for Indonesian production," Purnomo said.

"We have the deepsea West Seno field coming onstream at the end of this year or early next year and that will add another 60,000 bpd," he said.

West Seno in the Makassar Straits, which is being developed by Unocal, will eventually pump about 100,000 bpd. It is the deepwater field to be developed in Indonesia.

Indonesia failed to meet its former OPEC quota of 1.38 million bpd. The producers' cartel agreed on Wednesday to cut group output by 1.5 million bpd from February 1 to shore up prices.

Civil disputes in several Indonesian areas have delayed drilling and development projects, often pushing back timetables by more than six months, Purnomo said.

"We do have the capacity and the oil is there, it is more about timing," he said.

Purnomo said Indonesia favored a cut of between 1.5 million to 2.0 million barrels per day factoring in Iraq returning to normal level of exports by the end of this month.

If Iraqi crude oil exports don't return to normal, Purnomo said Indonesia would support OPEC putting additional barrels on the market according to the price band mechanism.

Purnomo also said Indonesia will unveil next month 21 blocks to be offered this year for oil and gas exploration, with six top priority blocks up for grabs in the first quarter.

The blocks will be offered throughout the year in several licensing rounds. The first round will be for six deepsea blocks in the Makassar Strait, all of which are located close to large hydrocarbon discoveries.

Two blocks will be offered in the Natuna Sea, six in the Arafura Sea, a further two in the Makassar Strait, one in Kalimantan, two in Sulawesi and two in the Seram Sea.

"The first six blocks to be offered are in deepwater in the Straits of Makassar. They are being given high priority and there are many foreign contractors interested," Purnomo said.