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T Pertamina EP, a subsidiary of state-owned PT Pertamina that runs the upstream oil and gas side of the business, is expecting output from its newly producing wells to help the company achieve its full-year target.

Pertamina EP president director Adriansyah said the company'€™s production reached 116,000 barrels of oil per day (bopd) in the first half of the year, still below its full-year target of 128,000 bopd.

Meanwhile, he said, gas production was about 1,050 million standard cubic feet per day (mmscfd) during January to June. Gas output is also below the company'€™s full-year target of 1,071 mmscfd by year-end.

'€œIn the second half, we are relying on the Jati Asri well [in West Java], which has just started production. We are also expecting [production] from the Louise-Nonny well in the Sanga-sanga field [in East Kalimantan],'€ Adriansyah said.

'€œWe estimate production to reach 124,000 bopd by year-end. Peak production will be at 130,000 bopd in December given the progress in Sanga-sanga,'€ he added.

Based on a recent test, the Jati Asri well, which is located in the west of the Melandong field in West Java, is expected to produce 3,110 bopd.

Meanwhile, the Louise-Nonny development well in the Sanga-sanga field in East Kalimantan will also produce 1,200 bopd.

According to Adriansyah, his company is currently working on the settlement of a land dispute involving an area used for the Sanga-sanga development, particularly on overlapping claims by both legal and illegal coal miners in the area. The company recently settled a dispute with a major coal miner, PT Kaltim Prima Coal, on an overlapping area in Sangatta, East Kutai, East Kalimantan.

In past years, Pertamina EP failed to meet its full-year targets. Figures from the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) showed that its production reached 120,600 bopd in 2013, lower than its target of 123,600 bopd.

Indonesia, a former member of the Organization of Petroleum Exporting Countries (OPEC), is struggling to maintain its oil production. The country'€™s oil output reached 797,000 bopd from January to June, far below the 818,000 bopd target in average oil production by year-end as stated in the state budget.

The additional production from Louise-Nonny and Jati Asri is expected to contribute to the full-year target achievement. However, the main focus is now on additional production at the Banyu Urip field in the Cepu block.

The SKKMigas secretary said earlier that higher output at Banyu Urip was expected this month.

'€œIn the second half of the year, Cepu is expected to give additional output of 10,000 bpd,'€ he said.

The Banyu Urip field is currently producing about 29,000 bopd. The field is being developed by PT Pertamina EP Cepu, a subsidiary of state-owned oil and gas firm PT Pertamina and ExxonMobil subsidiary Mobil Cepu Ltd.

The development was initially targeted for completion in July. However, various things caused contractors to miss the deadline.