Non-technical problems threaten RI’s oil, gas production

Upstream oil and gas regulator BPMigas reported that in the beginning of 2012, several disturbances had ruined the country’s efforts to ramp up oil and gas production.

An unplanned shutdown at the Tampi field at the Merangin Dua Block in South Sumatra, operated by Sele Raya, has caused the country to lose 1,300 barrels of oil per day (bpd) since Jan. 23. The production halt followed the issuance of a letter from Musi Rawa Regent Ridwan Mukti ordering the company to stop the operation of crude oil tanker trucks.

“The regent unilaterally cancels the cooperation on the utilization of the regency’s roads for crude oil transportation. Currently, the Merangin Dua block only produces 80 bpd,” BPMigas spokesperson Gde Pradnyana said in a press statement sent to The Jakarta Post on Wednesday.

Meanwhile, demonstrations had also disturbed operations at Chevron’s production facilities and offices in Minas and Rumbai in Riau, as well as at Santos’ in Sampang and Sumenep on Madura Island in East Java, which might lead to uncertainty in the country’s investment climate, he continued.

BPMigas records show that most disturbances occurred in the southern part of Sumatra, including stealing, vandalism, demonstrations and pipeline leakage.

“That’s from the reports we receive. There’s a possibility that many other disturbances remain unreported,” Gde revealed.

He acknowledged that 60 percent of the decline in the country’s oil and gas output decline could be attributed to non-technical causes. Therefore, he called on all related parties to cooperate in combating such disturbances.