Oil Lifting Target Realistic, Analyst Says
17 August 2014 12:16 WIB
TEMPO.CO, Jakarta - Oil and gas expert at the Center for Petroleum and Energy Economics Studies, Kurtubi, said the oil lifting target set in the State Budget Draft for 2015 was still realistic. According to him, the target set at 845,000 barrels per day can be achieved since the new oil block in Cepu will produce 165,000 barrels per day.
However, Kurtubi added, the domestic oil production tend to decline.
"In 2016, the oil lifting would decline further," Kurtubi told Tempo yesterday.
The Cepu block was predicted to be able to reduce crude oil exports by 10 percent. Currently Indonesia is importing 500,000 barrels of crude oil per day.
Indonesia was unable to find new oil fields over the last ten years, resulting in the declining production. The new government was expected to find new oil fields and to optimize old wells by using Enhanced Oil Recovery technology.
To improve investment in oil and gas sector, the new government is also expected to speed up permit procedure, said the expert. The government must also conduct production and shipping recording to monitor the sector. "We need some kind of computerization so data update can be more accurate."
FAIZ NASHRILLAH
