Upstream oil and gas regulator BPMigas has set a new oil and condensate output target of 1.05 million barrels per day (bpd) this year, higher than the 910,000 bpd the government forecast in its recent state budget revision.
BPMigas chairman Kardaya Warnika said Monday the new target was within reach, as in the first month of the year production had already reached more than 1 million bpd, in contrast to 954,357 in the same period of last year.
He said the increase was attributable to the success of U.S.-based oil firm ConocoPhillips in increasing output in its two aging fields -- Belida and Belanak in Natuna -- from 20,000 to 40,000 bpd.
Another source of the increase came from the company's newly produced field Kerisi in West Natuna, which produces 37,000 bpd, far higher than the firm's earlier estimation of 3,500 to 4,000 bpd.
Kardaya said the agency would still heavily depend on oil fields managed by U.S.-based oil company Chevron, which accounts for almost half of the nation's total oil output, to meet the target.
State oil and gas firm Pertamina is set to produce 145,000 bpd, Chinese oil giant CNOOC 42,000 bpd, Conoco 40,000 bpd, local oil firm Medco 38,000 bpd, French Total E&P 30,000 bpd, British oil firm BP 30,000 bpd and Chinese PetroChina 11,000 bpd.
With condensate production expected to reach 121,000 bpd, the new target was realistic, said Kardaya.
Under the initial 2008 state budget, the government targeted the production of 1.03 million bpd. However, in its recent revision the government lowered the target to 910,000 on the back of sluggish exploration activities and aging fields.
BPMigas deputy chairman for planning Ahmad Lutfi predicted investment for exploration and exploitation activities would increase significantly with some projects already in the pipeline this year.
In a report by BPMigas, investment in the country's oil sector was estimated to reach around $1.16 billion.
Ahmad said the biggest spender would be Total, which planned to spend $1.13 billion this year to develop its three fields -- Handil, Bekapai and Tunu -- in East Kalimantan.
The fields are expected to come onstream this year.
