Saturday, March 7, 2009

Indonesia Expects 6 Oil & Gas Fields On Stream In 2010

JAKARTA -(Dow Jones)- Indonesia expects six oil and gas fields to start operations in 2010, and these will likely produce a total of 249 million cubic feet of natural gas a day and 3,785 barrels a day of crude oil, a government official said Thursday.

Raden Priyono, chairman of upstream oil and gas regulator BP Migas, said the fields include the ConocoPhillips (COP) Bukit Tua field in Sumatra, Pearl Oil's Ruby field in Kalimantan, and the South Sembakung field in Kalimantan, which is jointly operated by state-owned PT Pertamina and Medco Energi Internasional ( MEDC.JK).

The other three are the Gajah Baru-Iguana-Naga field in the Natuna Sea operated by Premier Oil (PMO.LN), the Peciko Phase 7 field in East Kalimantan operated by Total S.A.(TOT) and Pertamina's Gundih field in East Java.

The government and parliament have set a target of 960,000 barrels a day of oil for 2009 as output from aging fields declines, and additional production is only expected to be around 5,336 barrels a day. The natural gas output target is 7.53 billion cubic feet a day for 2009.

The government is relying on the Cepu block, which is jointly operated by Pertamina and Exxon Mobil(XOM), to boost crude oil output.

The block started producing a limited amount of crude oil in early December, which is expected to rise to 20,000 barrels a day in June. The peak production of 165,000 barrels a day is expected to be achieved in 2012.

Analysts expect the current slump in oil prices and the global economic downturn will further undermine the government's efforts to boost crude output, as many oil companies are likely to defer their investment plans, especially for marginal fields.

Indonesia withdrew from the Organization of Petroleum Exporting Countries this year as it had stopped being a net oil exporter.

Some 10-15 new oil and gas blocks are planned to be offered for tender this year.

-By Deden Sudrajat; Dow Jones Newswires; 62-21 39831277; I-Made.Sentana@

No comments:

Post a Comment