INDONESIA CONVINCED TO MEET OIL LIFTING TARGET

By Andi Abdussalam

Jakarta, Sept 15 (Antara) - Indonesian oil officials are optimistic that the government will meet its oil lifting target this year, although it fails to meet the target in the first half of 2014.          The government has set an oil lifting target of 818 thousand barrels per day (bpd), yet in the January - June 2014 period, Indonesia was only able to lift 788 thousand bpd.          The target was not achieved because there were constraints such as production disturbance in the first quarter and the decline in the production capacity of a number of wells.          However, Acting Chief of the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) Johannes Widjonarko expressed optimism that SKK Migas  will achieve the oil lifting target of 818 thousand bpd as outlined in the revised 2014 state budget.          "Although some constraints exist, we are confident that the target will be achieved," Widjonarko said recently.            He said that his office was convinced seeing the trend now where production has been about 800 thousand bpd, but could still increase owing to production fluctuation.          After all, it is reported that a new oil reserve which is believed to be the largest in the country has been struck in Riau Province.          According to PT Chevron Pacific Indonesia (CPI), Rokan oil and gas block is the country's oil and gas biggest producer.          "Most of CPI's oil and gas production comes from the Rokan oil and gas block which includes the Duri and Minas fields. Several other small oil and gas fields inside the Rokan Block play an important role in achieving the government's production target," CPI's Communication Manager for Sumatra Tiva Permata said on Monday.          Governor of Riau Province Annas Maamun said recently that a new oil reserve, presumably the largest in the country, was found in Rokan Hilir District by PT Chevron Pacific Indonesia (CPI).          "Fifteen days ago, I met Chevron officials, and they said that the biggest oil reserve in Riau was located around River Rokan. The volume will be more than the oil deposits in Duri Field in Bengkalis," Governor Maamun claimed last month (Aug.18).          The Rokan Hilir District will become the richest in the nation if the source was 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 overcome poverty in the region, he stressed.          A legislator said last week that Indonesia should not worry about its oil deficit as Riau kept a large oil reserve.          In a discussion organized by the National Awakening Party Faction (FPKB) in Jakarta last weekend, M Lukman Edy of Commission VI of the House of Representatives (DPR), said Indonesia should not worry about oil trade deficit, as Chevron has released a new oil reserve finding in Bagan Siapiapi described as the largest in Southeast Asia.          However, he did not reveal any figure on the amount of oil reserves newly found in Riau's Rokan oil block.          Responding to the legislator,  Tiva Permata of Chevron was reluctant to make any comment. "We cannot comment on the statement. But we can say that Chevron continues to cooperate with the government and the Indonesian people to consistently provide energy for the state," he said.          He said that CPI applied the enhanced oil recovery (EOR) technology  to maintain and increase its oil production from old oil fields.          "As of now, Chevron operations in Indonesia have contributed about 40 percent of Indonesia's oil production," Tiva pointed out.  Chevron is the largest geothermal energy producer in the world and has a large area of operations in Indonesia.          With the conviction that it is able to meet the lifting target this year, the government has outlined a lifting target  of 845 thousand bpd in the Draft 2015 State Budget.          However, Commission VII on Energy Affairs of the House of Representatives and the government on Monday even agreed to set crude and condensate lifting target in the Draft 2015 State Budget (RAPBN) at 900 thousand bpd.         Commission VII Chairman Milton Pakpahan in a working meeting with Acting Chief Economic Minister Chairul Tanjung  that the agreed target for crude and condensate lifting is higher than the government's proposal of 845 thousand bpd set in the RAPBN 2015.         "We hope that the government will make efforts to achieve its crude lifting target for 2015 at 900 thousand bpd," the Commission VII chairman stated.          However, the agreement is accompanied by a clause specifying that the government will maintain its proposed figure of 845 thousand bpd.          During the meeting, the Indonesian Democratic Party of Struggle (PDIP) faction expressed optimism on the decision to boost the crude lifting target to 900 thousand bpd in 2015.          PDIP is the winning party in the legislative elections held on April 9, 2014. It nominated President-elect Joko Widodo in the July 9, 2014 presidential race.***2*** (T.A014/INE) (T.A014/A/BESSR/A. Abdussalam) 15-09-2014 23:55: