Bloomberg News

Indonesia’s 2012 Oil Production May Fall by 3.5%, BPMigas Says

October 17, 2012

Indonesia’s crude and condensate output may fall 3.5 percent this year because of problems including unplanned shutdowns and reduced production in older oil fields.

Indonesia may pump an average 870,000 barrels a day of crude and condensate, down from 902,000 barrels in 2011, R. Priyono, head of the nation’s oil and gas regulator BPMigas, said in a meeting with parliament in Jakarta today. Production may recover to 900,000 barrels a day next year, he said.

“As major oil fields are yet to be discovered, we are in the period of declining production,” Priyono said. The nation is relying on the Cepu block, which is operated by Exxon Mobil Corp., to lift output to exceed 1 million barrels, he said.

The nation withdrew from the Organization of Petroleum Exporting Countries in 2008 amid falling petroleum shipments after output from older fields declined.

Indonesia’s natural gas output may rise to 8,690 million cubic feet a day in 2013 from an estimated 8,412 this year as some gas fields will start operations, Priyono said.

BPMigas targets $34.46 billion of oil and gas revenue this year, more than the state budget target of $33.5 billion because of higher prices, Priyono said. Indonesia’s crude stockpiles amount to 11 million barrels, including 5 million barrels which are ready to be sold, he said.

To contact the reporter on this story: Fitri Wulandari in Jakarta at fwulandari@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


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