Oil production in Riau down by 10 percent annually

Oil production in Riau down by 10 percent annually

Puji Santoso, The Jakarta Post, Pekanbaru

PT Caltex Pacific Indonesia, the country's largest oil producer
situated in Riau province, is facing a sharp decrease in
production by around 10 percent annually due to the reducing oil
reserves in its aging wells.

The company's president director, Wahyudi Yudiana Ardiwinata,
said Caltex was struggling to maintain its production level.

"It is not possible for us to increase production. But we can
try to keep the decrease at between 3 percent and 5 percent," he
said on Friday after awarding scholarships to high school
students in the city.

At present, Caltex produces 500,000 to 520,000 barrels per day
(bpd) of crude oil from its wells across Riau province.

Caltex is the largest oil producer in Indonesia with
production across the country reaching 499 million bpd in 2004.

The country's oil production has decreased over the past
decade due to the aging field and lack of new oil exploration
nationwide. Due to the decreasing production, the country is
considering resigning from the Organization of Petroleum
Exporting Countries (OPEC).

Wahyudi further said that to explore some existing wells the
company would need more investment.

"Exploration costs are too high compared to the remaining oil
reserves," he said.