PERTAMINA TO RAISE OIL OUTPUT

By Andi Abdussalam

Jakarta, June 9 (ANTARA) - State-owned oil and gas company Pertamina, whose oil production is declining by 18 percent per annum, will increase its production this year to 171.9 thousand barrels per day (bpd), from the previous year's level of 150 million bpd.

        Besides, it will also import 5.7 million barrels of oil this month to meet the shortage of domestic supplies which reach 30 percent. "Pertamina has to import 30 percent of the domestic need for oil, particularly premium gasoline and diesel oils. It will began the import this month," Pertamina's Vice President for communications affairs, Basuki Trikora Putra, said.

        In order to achieve the production target, Pertamina will in its oil production apply the enhance oil recovery technology and optimize its production in its main oil fields in Sukowati, Tambun, Limau and Polent, Minister Energy and Mineral Resources Purnomo Yusgiantoro said.

        Pertamina's daily gas and oil output have experienced relatively good increase in the past several years. In the 1990s, Pertamina's oil production was still only about 95,000 barrels per day but now it has reached about 150,000 barrels per day.

        In 2009, Pertamina sets its production target at 171.900 barrels per day to be produced by its subsidiaries: PT pertamina EP with 125,500 bpd, Pertamina Hulu Energi with 34,700 bpd, Cepu with 6.7 thousand bpd and acquired companies with 5 thousand bpd. The gas production in the meantime is set at 1,123 million cubic feet per day.

        "This upward trend production must be maintained because Pertamina also is facing a decline production rate of 18 percent per annum," Minister Purnomo Yusgiantoro said.

        Purnomo said he had discussed efforts to increase Pertamina's oil production with Oil and Gas Director General Evita Legowo, Head of Upstream Oil and Gas Regulating Body (BP Migas), R. Priyono, Pertamina President Director Karen Agustiawan and Chairman for Oil and Gas Production Increase and Supervision Team (TP3Migas) Trijana Kartoadmodjo.

        The meeting was intended to gather various inputs from experts, especially from TP3Migas, so that Pertamina would be able to cope with various problems arising in the oil activities operations. In the meeting, the minister asked Pertamina to carry out comprehensive studies on the country's oil basins to find new oil reserves. Oil fields not yet exploited should be returned to the government so that they could be used by other companies.

        Pertamina has a vast operation area with the number of oil fields almost reaching 160. These oil fields are cultivated under a TAC and a JOB cooperation system with Pertamina's partners. In the 160 fields, there are 2,782 active wells of which 21 percent are production wells.

        In its attempt to meet the shortage in the domestic demand this month, Pertamina will import 5.7 million barrels in order to cover the 30 percent shortage. With the 30 percent shortage, Pertamina will import 3.5 million barrels of premium and 2.2 million barrels of diesel oils per month.

        "On aviation turbine (avtur) need, we have become self-reliant in the aircraft fuel as well as in kerosene needs," Putra said.

        Data showed at Pertamina that its imports of premium gasoline in April stood at 5.640 million barrels, in May 4.9 million barrels and in June 3.5 million barrels. Its diesel oil imports in April were recorded at 1.2 million barrels, in May 2.4 million barrels and in June 2.2 million barrels.

        Since April, Pertamina has no longer imported avtur as a result of the government's kerosene-to-liquefied petroleum gas conversion program. The kerosene surplus obtained from the conversion program is processed into avtur fuel.

        The government has also decided not to export gas until domestic need for gas supplies is adequately met.

        "So long as domestic need for gas supplies have not been met, the government will not make any new gas export contract," Vice President Jusuf Kalla said after chairing a meeting at his office to discuss gas-related matters and the construction of a new refinery.

        According to the vice president, the government's decision to make no new gas export contract has been agreed on by President Susilo Bambang Yudhoyono because it was made in an effort to meet domestic demand for gas.

        "Domestic demand for gas has remained unmet. Therefore, we should make every possible effort to have it met before signing any new gas export contract," the vice president said.

        He said the government at the meeting also decided to prioritize domestic gas supply, to improve domestic energy supply by constructing new refineries, and to set efficient prices for gas and energy.

        "Thus for the Donggi Senoro contract, the price will remain the same but the gas will be used to meet domestic demand," the vice president said.***2*** (T.A014/A/HAJM/B003) 2. 20:50. (T.A014/A/A014/B003) 09-06-2009 21:36:48