OIL PRODUCTION FAILS TO REACH TARGET

Jakarta, May 12 (ANTARA) - The Oil and Gas Regulating Body (BP Migas) said the country's crude production had not yet reached the target set in the 2009 State Budget , namely 960,000 barrels per day.

BP Migas vhief R Priyono said here on Tuesday the average crude production today was Rp959,000 barrels per day or 6,000 barrels per day short of the target.

"But we are optimistic that we will be able to exceed the state budget target at the end of 2009," he said.

He said the failure to achieve the average target today was due to a number of problems such as damaged compressors.

Priyono said though oil and gas production was declining, it did not mean revenues would also decline because there were stocks being stored in tanks.

"There is no direct correlation between state revenue and production," he said.

Previously, Pertamina EP reported average oil production until May 10, reached 125,606 barrels per day or exceeding the target of 125,500 barrels per day.

Pertamina EP spokesman M Harun said that oil production in that period was the highest the company had achieved so far.

For 2009, Pertamina EP has set itself the target of turning out 125.500 barrels per day which was an increase from 116,600 barrels per day on 2008.***2***