SKK Migas Convinced Of meeting Oil Lifting Target

Jakarta, Aug 19 (Antara) - Johannes Widjonarko expressed optimism that Upstream Oil and Gas Regulator (BP Migas) will achieve the oil lifting target set in the revised 2014 state budget at 818 thousand barrels per day. "Although some constraints exist, we are confident that the target will be achieved," Widjonarko, acting head of BP Migas, said here on Monday. The constraints include oil production disturbance in the January-March 2014 period and the decline in the production capacity of a number of wells such as that in the Cepu oil Block. "Of late, production has been about 800 thousand barrels per day (bpd), but could still increase owing to production fluctuation," Widjonarko noted. It is a heavy burden to meet the target, as oil lifting in the first semester of 2014 was only 788 thousand bpd, or below the target set in the revised 2014 state budget. In the meantime, Governor of Riau Province Annas Maamun had revealed on Monday that a new oil reserve, presumably the largest in Riau, was discovered in Rokan Hilir District by PT Chevron Pacific Indonesia. "Fifteen days ago, I met Chevron officials, who said the largest oil reserve in Riau was located around River Rokan. The volume is believed to be more than the oil deposits in Duri Field in Bengkalis," Governor Maamun claimed here on Monday. Rokan Hilir District will become the richest in the nation if the source is confirmed, he stated, adding that the revenues from the oil reserve will aid to reduce poverty in the region. It was the obligation of the administration and the government to help in overcoming poverty in the region, he stressed. Moreover, the wealth of Riau Province should be used for its development, as many roads need to be constructed and repaired to boost local economy, the governor emphasized. "There is also rapid population growth in Rokan Hilir District, with 480 thousand residents before five years to 790 thousand residents currently, which is an increase of 40 percent," the governor pointed out. Besides oil, Riau is also an important center for palm oil production. According to the Bogor Agriculture Institute, Riau has the most fertile land and the largest number of palm oil plantations in Sumatra Island.