Jakarta (ANTARA News) - Head of the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) Rudi Rubiandini has said that Indonesia is entering the year of oil well drilling in 2013.

"We have begun the drilling era. Oil reserves could not be channeled to our tanks if the wells are not drilled," he said here on Monday.

He said that the drilling of wells were begun in an effort to prepare oil stocks for five to 20 years ahead.

Rudi said that oil production assumption in the 2013 budget was set at 900 thousand barrels per day while the production capacity now was only 830 thousand barrels per day.

To increase production, Rudi said his office had prepared a work plan for 2013, consisting of 104 points of work programs.

"We have held a working meeting to set our work plan for 2013. We have set 104 points in our work programs that should be achieved," he added.

In the meantime his side hailed the appointment of state-owned Bank BNI as a trustee and a paying agent for the Blok Mahakam`s LNG and LPG sales contract in East Kalimantan.

"BNI Singapore has been appointed as the trustee and paying agent for the deal. This is the beginning of trust given to the national bank, something which is not easy to obtain," he noted.

He said that BNI Singapore would carry out its task as a payment agent, namely receiving the payment of Blok Mahakam sales and channeling it to the agreed beneficiary based on the contract.

The contract was signed on Monday by BNI President Director Gatot M Suwondo, State-owned oil firm Pertamina Finance Director Andri T Hidayat, the President Director of Total E&P Indonesie and the head of the SKK Migas Rudi Rubiandiri.

In the meantime, PT Chevron Pasific Indonesia (CPI) said last week it was awaiting a recommendation from the SKK-Migas to resume development of the Siak block in Riau.

"We have not received information from the upstream oil and gas authority as to who is to be the operator of the Siak Block after Nov. 2013," Tiva Permata, the communications manager of PT CPI said.

The 22 year contract of the subsidiary of the US-based Chevron Pacific Corp for the block expired in November this year.

Chevron, formerly PT California Texas Indonesia, already extended the contract, which was signed for the first time in September 1963 under the previous system of working contract.

The block produces around 1,600-2,000 barrels of crude oil per day .

Chevron, the country`s largest oil producing company, also operates a number of oil fields in Riau.

Tiva said the Siak Block has been a major contributor to Chevron`s oil production.

"It is not as big as the Rokan Block but the Siak Block supports the success in the operation of the Rokan Block," she said.

Earlier it was reported the contract of PT Chevron Pacific Indonesia, will be renewed after the expiration of its present contract in November.

"We did not know about such report. We are still waiting for a recommendation from SKK-Migas," Tiva said.

Meanwhile, PT CPI will continue efforts to develop multi-technology to maintain its production level, which has been on the decline from year to year including from the Siak Block, she said.

Development of the technology is to optimize production to offset the declining trend.

Multi-technology is a technology suitable for oil fields operated by the company in Indonesia and other countries, Tiva said.

Application of multi-technology is important to maintain oil and gas production level including in Riau oil fields, she added.
(A014/H-YH)

Editor: Jafar M Sidik
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