Pertamina to order its oil contractors to cut production
<p>Pertamina to order its oil contractors to cut production</p><p> JAKARTA (JP): State oil and gas company Pertamina said it will
order its oil contractors to cut production by an average of
3,000 barrels per day (bpd) each to honor Indonesia's latest
commitment to cut production by 30,000 bpd.</p><p>Gatot Wiroyudo, chief of Pertamina's directorate for foreign
contractors, said the production cut would affect only those
which produce more than 20,000 bpd operating old oil wells.</p><p>Contractors which produce more than 20,000 bpd operating new
oil wells would be allowed to maintain their current output, he
said.</p><p>"Operators of new oil fields are allowed to maintain output so
that they have the chance to get a return on their investment,"
Gatot said on the sidelines of Pertamina's hearing with the House
of Representatives's Commission V for mines and energy, industry
and trade, investment, manpower, and environment.</p><p>He said there were ten contractors which would be affected by
the production cuts, including Caltex Pacific Indonesia, Unocal,
Maxus and Total.</p><p>He said the country's oil production was 1.31 million bpd in
June and would be 1.28 million bpd from July.</p><p>OPEC member countries agreed last week to lower their oil
production in 1998 by 2.6 million bpd, while non-OPEC oil-
producing countries also pledged to lower their production by
500,000 bpd.</p><p>Meanwhile, mines and energy minister Kuntoro Mangkusubroto
expressed optimism that the price of crude oil would reach $17 a
barrel by November following an agreement to lower world oil
production by 3.1 million bpd.</p><p>Kuntoro said the reduction in oil output agreed during the
OPEC ministerial meeting last week in Vienna was the largest in
OPEC history.</p><p>"This is very good news indeed, because this way the price of
oil is expected to increase further to a level higher than US$13
per barrel as set in the state budget for fiscal year 1998/1999,"
he was quoted by Antara as saying. (jsk)</p>
order its oil contractors to cut production by an average of
3,000 barrels per day (bpd) each to honor Indonesia's latest
commitment to cut production by 30,000 bpd.</p><p>Gatot Wiroyudo, chief of Pertamina's directorate for foreign
contractors, said the production cut would affect only those
which produce more than 20,000 bpd operating old oil wells.</p><p>Contractors which produce more than 20,000 bpd operating new
oil wells would be allowed to maintain their current output, he
said.</p><p>"Operators of new oil fields are allowed to maintain output so
that they have the chance to get a return on their investment,"
Gatot said on the sidelines of Pertamina's hearing with the House
of Representatives's Commission V for mines and energy, industry
and trade, investment, manpower, and environment.</p><p>He said there were ten contractors which would be affected by
the production cuts, including Caltex Pacific Indonesia, Unocal,
Maxus and Total.</p><p>He said the country's oil production was 1.31 million bpd in
June and would be 1.28 million bpd from July.</p><p>OPEC member countries agreed last week to lower their oil
production in 1998 by 2.6 million bpd, while non-OPEC oil-
producing countries also pledged to lower their production by
500,000 bpd.</p><p>Meanwhile, mines and energy minister Kuntoro Mangkusubroto
expressed optimism that the price of crude oil would reach $17 a
barrel by November following an agreement to lower world oil
production by 3.1 million bpd.</p><p>Kuntoro said the reduction in oil output agreed during the
OPEC ministerial meeting last week in Vienna was the largest in
OPEC history.</p><p>"This is very good news indeed, because this way the price of
oil is expected to increase further to a level higher than US$13
per barrel as set in the state budget for fiscal year 1998/1999,"
he was quoted by Antara as saying. (jsk)</p>