Indonesia pushes to meet oil targets

JAKARTA, Dec. 31 (UPI) -- Indonesia is working to meet oil production targets in the New Year.

Upstream oil and gas regulator BPMigas says it is upbeat about meeting nest year's goals, though output expectations for 2007 will not be achieved, the Jakarta Post reported.

BPMigas Deputy Chairman Abdul Muin said next year's target of 1.034 million barrels of oil per day is achievable as the country's largest producer, Chevron, plans on increasing its production and new oil fields are expected to come onstream.

Muin said Chevron, which produced about 415,000 bpd this year, is expected to raise output to 441,000 bpd.

"We will still be relying on Chevron for oil production next year," Muin said. "What they need to do is just keep adding more wells and maintain their mature fields."

In addition to Chevron's increase, the agency is hopeful there will be additional production from 22 newly developed oil blocks that are expected to begin commercial production next year, Muin said.

However, many are skeptical about this target given the fact that production in most existing oil fields is declining due to depleting reserves. To help facilitate oil and gas operators intensify their exploration work, Finance Minister Sri Mulyani Indrawati said her ministry has issued decrees exempting operators from paying import duties and taxes on drilling equipment that will go into effect Tuesday.