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Indonesia, the second smallest member of the Organization of
the Petroleum Exporting Countries (OPEC) in terms of oil production,
hopes to slightly increase its output to 1.02 million barrels of oil
per day (bopd) this year.
In 2006, Indonesia produced an average of 1.009 million bopd of crude
oil and condensate, down from 1.05 million in 2005.
The target was announced last weekend by R. Priyono, director general
for upstream commercial oil and gas development at the Energy and
Mineral Resources Ministry. He said the goal was realistic as some of
the oil firms operating here were planning to increase their output.
U.S.-based Chevron, for instance, plans to add 10,000 bopd this year,
Priyono said.
"It has had an internal issue hampering production, so if it can manage
the problem this year, Chevron can boost its current production of
about 400,000 bopd," he said.
Indonesia, once a major oil producer in OPEC, has suffered a decline
over the past several years due to a lack of new finds and investment.
The country is now a net oil importer.
Indonesia's oil production exceeded 1.5 million bopd in the early 1980s.
To boost investment in the oil exploration sector, the government
recently awarded exploration rights in remote areas of the country
through a direct-offer mechanism to 18 firms with a total investment of
US$235.78 million.
This year, the government will offer 20 more oil and gas blocks through
an open tender. They include onshore blocks in West Java; Semai, Papua;
and Teluk Tomini, Central Sulawesi.
Priyono said that some big companies, including CNOOC, Exxon, Chevron
and Total had showed interest.
The government hopes to boost oil production to 1.3 million bopd by
2009.
Priyono added that Inpex Sumatera Ltd has set aside US$80 million to
boost gas production from 4 new wells in Marsela field, in Timor Strait.
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