Thu, 19 May 2011

Jakarta (ANTARA News) - Vice President Boediono expressed concern here on Wednesday over the decline in the country`s oil production and has asked BP Migas to pay serious attention to it.

He said the oil sector had shown its good performance because oil production in Indonesia is declining.

"There is a sector I am not happy about namely our oil sector which is performing well. Oil production has dropped," he said in his address at the opening of the 35th Indonesia Petroleum Association (IPA) Convention and Exhibition.

He said the drop in the oil production could affect badly on the security of fuel oil supply, exports and state budget. The vice president said in the past few years oil exploration activities have dropped.

The rate of oil explorations is still far before the need to increase production to achieve the production target of 1.2 million barrels a day.

To overcome the situation, the vice president said it needs cooperation to find the right and sustainable model and real improvement in its implementation.

"We also need to work hard to find a way to get quicker gains," he said.

Among the ways are, he said, increasing efforts to exploit the potentials of oil production hike and eliminate unexpected production stoppages that would affect oil production.

"I will ask BP Migas (the regulatory agency) and the ministry of energy and mineral resources to pay a serious attention to the issue," he said.

On the occasion Vice President Boediono also stated Indonesia was attracted to develop non-conventional gas and non-conventional energy in general.

He said Indonesia wished to cooperate with investors and industrialists upon a right model that would easily be implemented.

The vice president said the government was serious to cooperate with oil investors and industrialists to settle problems that had probably hindered development of the oil and gas sector.

"We wish you would be our partners in developing this sector," he said.

The event was also attended by ministry of energy and mineral resources Darwin Z Saleh, IPA President Ron Aston and oil and gas industrialists.

The IPA Convention and Exhibition that would last until May 20 carries a theme of "Indonesia Energy: Growth, Security and Sustainability"