On Friday, Deputy Minister for Energy and Mineral Resources Susilo Siswoutomo noted that the oil production of 820 thousand bpd was a realistic and attainable target.
"We are encountering difficulties in increasing the production, as our oil wells are old," the deputy minister pointed out.
The revised oil lifting is far below the target outlined in the 2014 state budget, which was set at 870 thousand bpd.
Susilo explained that the revision in oil lifting was necessary, as the production of oil from the Cepu Block will commence only in November 2014. It has been delayed from its previous schedule of May 2014.
In November 2014, the Cepu Block is forecast to produce 85 thousand bpd of crude oil, with its peak production to be reached by December 2014 at 165 thousand bpd.
Apart from the Cepu Block, there are 26 new oil blocks which are estimated to produce about 10 to 15 thousand barrels per day.
Earlier, the office of the Oil Production Contractors Joint Operation (KKKS) presented a work program and budget (WP&B) in 2014, for the production of oil amounting to 804 thousand bpd.
But, the Upstream Oil and Gas Operator (SKK Migas) urged the KKKS to increase its output plan to 830 thousand bpd or an increase of 25 thousand bpd.
In 2013, the oil production was recorded at 826 thousand bpd or 98 percent of the state budget target set at 840 thousand bpd.
(A014/INE/H-YH)
EDITED BY INE
(A014/KR-BSR/H-YH)
Editor: Jafar M Sidik
Copyright © ANTARA 2014
