[Kabar-indonesia] Chevron expects decrease in its oil/gas production in Indonesia

[Joyo at aol.com]

Chevron expects decrease in its oil/gas production in Indonesia

Jakarta, Oct. 7 (Antara) - US-based Chevron Corporation estimates that its 
oil and gas production in Indonesia will undergo a decline of 8 or 9 percent 
to 555,000 barrels/day in 2007 from 610,000 barrels/day in 2006, a spokesman 
said.

PT Chevron Pacific Indonesia (CPI) Managing Director Suwito Anggoro said here 
recently the company was expecting the decrease as its oil/gas fields in 
Indonesia were overaged.

"We have to work hard to limit the decrease in our oil/gas production to not 
more than 8 or 9 percent," he said, adding that unless serious efforts were 
made to stem the decrease, the drop could reach 15 percent.

The projected oil/gas output in 2007 would include an additional 15,000 
barrels/day from the Duri field in Riau and an additional output from drilling 180 
wells at a total cost of US$700 million, he said.

To prevent a bigger decline in production, Chevron was also injecting 5.0 
million barrels of water per day into its wells to yield 95,000 barrels more of 
oil per day. The company was expecting additional production from its oil/gas 
fields in East Kalimantan as of 2009.

As one of biggest US energy companies Chevron Corporation was managing its 
operations in Indonesia through its IndoAsian Business Unit (IBU) which 
controlled Chevron Pacific Indonesia (CPI) and Chevron Indonesia Company (CIC).

Chevron`s output in Indonesia in 2006 was estimated to total 610,000 
barrels/day, composed of 500,000 barrels of oil and condensate, and gas equivalent to 
110,000 barrels of oil per day.

Chevron`s oil and condensate output in 2006 would account for 50 percent of 
Indonesia`s total oil production, which was estimated at 1.0 million 
barrels/day in the same year.

CPI was currently exploring and producing oil/gas in 88 oil/gas fields in 
four blocks in Riau and North Sumatra, the main oilfields being Duri, Minas and 
Bekasap.

CIC which is currently operating 12 oil/gas fields in East Kalimantan and an 
oil/gas field in the Makassar Strait, is a gas supplier for the export of 
liquefied natural gas (LNG) from Bontang. The Bontang LNG plant was also taking 
gas supplies from Total E&P Indonesie and Vico Indonesia.

Besides its oil/gas production activties. CIC was also operating geothermal 
power plants in Darajat and Salak, both in West Java.

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Joyo Indonesia News Service
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