Oil Production Target Set At One Million Barrels Per Day

Jakarta, May 13(Antara) - The Working Unit of Upstream Oil and Gas Regulator (SKK Migas) predicted the country`s oil production would increase significantly next year. SKK Migas sets production target at one million barrels per day starting October next year, its chief Rudi Rubiandini said here on Monday. The production target could be achieved after the Banyuurip field in the Cepu Block has been fully in operation with production peaking at 165,000 barrels per day expected to start in October or November next year, Rudi said. "That is our optimistic scenario," he said, adding pessimistic scenario is the target would be achieved in December 2014 or January, 2015. In 2014, the daily output is expected to average 860,000 barrels to 900,000 barrels per day, to rise to one million barrels per day, he said. He said on April 30, 2013, he officially commissioned drilling of oil wells in Banyuurip, where 42 wells would be drilled including 29 production wells and 13 injection wells. Data at SKK Migas showed by March 31, 2013 work in Banyuurip projects have been 51.1 percent completed. The projects include engineering, procurement and construction (EPC) 1, which is on shore production facility valued at US$746.3 million . The project is being built by a consortium of PT Tripatra Engineering and Samsung Engineering already 53.6 percent completed. EPC 2 is carried out by a consortium of PT Inti Karya Persada Tehnik and PT Kelsri doing the design and installing desalination pipe at a cost of US$57.03 billion, already 57.8 percent completed. EPC 3 project is construction of offshore pipeline and mooring tower to cost US$131.64 million being carried out by PT Rekayasa Industri and Likpin LLC , 33.1 percent completed . EPC 4 project is construction of a floating storage and offloading (FSO) facility valued at US298.7 million being carried out by PT Scorpa Pranedya and Sembawang Shipyard, 59.7 percent completed. EPC 5 project is construction of supporting facility valued at US$95.58 million being built by PT Hutama Karya and PT Rekayasa Industri, 25.8 percent completed. Cepu Block has already producing late 2008 but it is not yet fully operational. Currently it is producing around 27,000 barrels of crude oil per day. It is expected to operate at full capacity in the last quarter of 2014 with peak production at 165,000 barrels per day. Last week SKK Migas said the country recorded a slight increase in its oil production in the past three months. "It was not significant but it was in line with the SKK Migas` commitment since it was established," Rudi told Antara news agency. The country`s oil production in the past three month peaked at 840,000 barrels per day up from a daily peak of 827,000 barrels earlier, Rudi said.