RI's Oil Production Projectd To Reach 830,000 BPD In 2014

Jakarta, Dec 22 (Antara) - Indonesia`s oil production will reach 830,000 barrels per day next year, falling short of the target of 870,000 bpd in the state budget, the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) has predicted. "The forecast is based on technical matters," the task force`s acting chief J Widjonarko said here on Sunday. Investment in the oil sector was projected to increase to US$26 billion in 2014 from US$23 billion in 2013, he said. The investment would mainly be used to develop the Banyuurip and Kepodang fields, he said. According to the 2014 work program and budget (WP&B), contractors had only agreed to next year`s production at 804,000 bpd, he said. Widjonarko said SKK Migas will make an optimum effort to raise production by 25,000 bpd so that the target of 830,000 bpd could be achieved. Under the WP&B, production was set at 804,000 bpd since it only relied on old wells and Block Cepu which was expected to start production only in November 2014, he said. "Production at Block Cepu will be behind the target of early July 2014 due to four-month lateness in licensing process," he said. He said gas production under the WP&B 2014 was set at 6.7 billion cubic feet per day. Cost recovery under the WP&B would reach US$19.1 billion, well above US$15 billion set in the 2014 state budget, he said. "We will control it so it will not reach that high. That is our task," he said.