Indonesia Will Not Hit Oil Production Target Of 977KB/D In 2008 - Jakarta Post

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Already under threat of a fiscal calamity amid soaring oil prices and unrealistic government fuel subsidy spending, Indonesia is expected to miss this year's oil production target of 977,000 barrels per day (bpd), the Energy and Mineral Resources Ministry said. The ministry announced in a media statement over the weekend the country would only produce 965,000 bpd, 12,000 bpd short of its target, as some oil producing companies revised down their output targets.

The statement said the latest calculation was based on an accumulated full-year production estimate from oil-producing firms collected during a meeting last week. Although during the meeting a number of oil companies increased their oil production estimates, many more lowered them. "Of 40 proposals that we have received, up to 16 operators report that their production rate this year will exceed the target," it said as quoted by Detikfinance, citing U.S.-based Conoco Philips and Chevron as examples.

The remaining companies revised down their production rate, including state oil and gas firm PT Pertamina, which cited production of 132,000 bpd, down from its previous estimate of 145,000 bpd. The government has set an oil production target of 977,000 barrels per day in the state budget.

Energy analysts have said the country's depleting oil resources and lack of new explorations have contributed to the country's oil production decline over the past five years.

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