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Jakarta Post

Cepu delay losses to RI could be up to $150m

Jakarta   /   Fri, May 15 2009   /  01:08 pm

Production delays in the huge Cepu oil and gas block may have caused up to US$150 million in potential state revenue losses, upstream oil and gas regulator BPMigas told lawmakers Thursday. The figure for potential losses in state revenues is calculated based on the government's share of the initial production target of 20,000 barrel oil per day (bopd), given the assumption of a crude oil price at US$60 per barrel, BPMigas's chairman R. Priyono said in a hearing with the House of Representatives Commission VII overseeing energy and mineral resources. "The Cepu block was targeted to produce 20,000 bopd of oil from January onward, but as of today the block only produces between 1,000 and 5,000 bopd of oil," Priyono said. The Cepu block, discovered in March 2001, is located at the border of East Java and Central Java, and is said to have estimated proven reserves of 600 millio...