Indonesia's crude oil output to remain stable until 1999

Indonesia's crude oil output to remain stable until 1999

JAKARTA (JP): Indonesia's crude oil output is expected to
remain stable at 1.36 million barrels per day (bpd) until 1999 in
spite of steady declines in production through the "primary
recovery system," which yields the initial barrels of oil.

G.A.S. Nayoan, a senior vice president of the state-owned oil
enterprise Pertamina, said at an international business meeting
here yesterday that "enhanced recovery," a technique used to mine
more profoundly, in old oil fields will offset the steady
declines of production in fields with the primary recovery
system.

The government has projected that Indonesia, which has not
made major oil discoveries in the last few years, might become a
net oil importer by the early 2000s.

Nayoan said yesterday that enhanced recovery will become the
new trend in future production technologies.

"In the first decade of the next century, enhanced recovery
may dominate oil production," Nayoan told some 150 local and
foreign business people attending the meeting.

Oil production through enhanced recovery is projected to
increase from 358,600 bpd this year to 394,000 bpd next year and
to 655,000 bpd by 2000.

"However, since the projected production in the coming years
is based on last year's field data, the above mentioned figures
must be considered minimal," Nayoan said.

Crude oil production from old fields through primary recovery
will likely steadily decline from 968,000 bpd this year to
855,500 bpd next year, 738,000 bpd in 1996, 650,000 bpd in 1997
and 584,400 bpd in 1998, he said.

Oil production from new fields through primary recovery is
projected to increase from 600 bpd this year to 3,600 bpd next
year and to 39,400 bpd in 1998.

"New field production is expected to become more and more
important," Nayoan said, adding that the current success ratio of
exploration activities is some 17 percent.

He said Indonesia's oil exploration and production business
will remain attractive as its current total reserves stand at
11.30 billion barrels, including the proven reserves of 5.78
billion barrels.(rid)