Oil Production to Continue Decreasing Until 2009
Monday, 18 December, 2006 | 12:58 WIB

TEMPO Interactive, Jakarta: The energy crisis still threatens Indonesia because it is estimated that the decrease in national crude oil and natural gas production will continue until 2009.

Trijana Kartoatmodjo, Deputy Head of the Upstream Oil and Gas Executing Body (BP Migas), said that national daily oil production currently stood at 1.1 million barrels, less than the demand of 1.3 million barrel per day.

“National production will continue decreasing by 1.2 percent per year while oil demand is rising by 1.5 percent per year,” he said in Bandung yesterday (17/12).

Trijana said that in 2007, it is estimated that daily production will be 995,000 barrels, in 2008, 982,000 barrels and in 2009 only 971,000 barrels.

As for daily consumption, in 2007 this will be 1.365 million barrels, in 2008 1.443 million barrels and in 2009 1.505 million barrels.

To solve this, BP Migas is targeting the drilling of 200 wells between 2007 and 2009.

Trijana went on to say that these 200 wells have the potential to produce 3.8 billion barrels of oil and 17 trillion cubic meters of gas.

The wells include those in Ambon, Cepu, the northern side of West Java, Jambi, the Madura Strait and Papua.

According to Trijana, now Indonesia has entered the net oil importer phase, when oil imports are more than exports.

“We hope there are new fields. Otherwise, it will difficult to meet domestic energy needs, let alone export,” he said.

Andand Bachtiar, a geologist from the Bandung Institute of Technology, however said that the effects of the crisis were actually being felt now.

He pointed out the recent long queues of people in order to obtain kerosene.

“So, in my opinion, now we are already suffering an energy crisis,” Andang told Tempo in Jakarta yesterday.
He in fact questioned BP Migas' target of drilling 200 wells between 2007 and 2009 in order to overcome the energy crisis.

“Are they production wells or exploration wells? If the existing wells have been developed, and the production is increased, it may be to 200 wells. But if they’re exploration wells, then that's nonsense,” he said.

Andang suggested that the government was daring enough to make unpopular policies I order to attract investment such as providing incentives for certain oil and gas fields.

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