Fatar, who replaced retired official Sukandar, told reporters in Jakarta that his approach would focus on “kicking around here and there” stalled oil and gas projects in the country such as those in Riau Islands and East Java provinces.

Fatar said his priority was to increase oil production, which has continued to decline annually. "But we are optimistic that the production can be increased, just like in the Banyu Urip block,” he told reporters after his appointment ceremony in Jakarta on Monday. Energy and Mineral Resources Minister Ignasius Jonan also installed 10 other lower ranking SKK Migas and energy ministry officials during the event.

The oil production in the Banyu Urip field operated by Exxonmobil Cepu Limited is expected to increase to 235,000 barrels per day (bpd) next year from 225,000 bpd at present thanks to new oil findings.

Statistics Indonesia (BPS) data shows the country’s oil and gas trade deficit hit US$12.7 billion last year, up 45 percent on the previous year. Indonesia has no choice but to increase its production in order to reduce imports.

However, following a recent oil spill, Fatar said SKK Migas would lower its oil production target to between 97 and 98 percent of an initially targeted 775,000 bpd throughout this year. The revised target translates to between 751,750 and 759,500 bpd.

A leak in one of the wells in Pertamina’s Offshore North West Java (ONWJ) block in Karawang, West Java, spilled about 108,000 bpd as of last week. The leaked well has the potential to produce 3,000 barrels per day.

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