Oilfields development
Indonesia oil, gas companies eye 43% rise in 2011 investment: BPMigas
Indonesia's oil and gas companies will increase their spending next year by 43.3% from 2010 to $18.91 billion in a bid to meet the country's output target of 970,000 b/d, a senior BPMigas official said Friday.
The companies' 2010 spending target was $13.62 billion, but they probably invested only $13.2 billion due to several reasons, including rig unavailability and land issues, the planning deputy chief of upstream regulator BPMigas, Haposan Napitupulu, said.
From the 2011 investment target, about $3.19 billion will be allocated for exploration, Napitupulu said.
Oil and gas companies operating in Indonesia plan to drill 96 exploration wells next year, up 41% from 2010, he said. They failed to meet their drilling target of 90 exploration wells this year due to rig availability problems, he added.
Indonesia expects to produce less oil and condensates in 2011 than set out in the state budget. The former OPEC member might produce 952,000 b/d, lower than the target of 970,000 b/d, based on oil and gas companies' production capabilities, BPMigas chairman R. Priyono said last week.
The country is not likely to meet its 2010 crude and condensate production target of 965,000 b/d, having pumped only 947,000 b/d till December 18. This was mainly because of unscheduled shutdowns, Priyono has said.
Indonesia has seen its crude output fall because of declining production at aging fields.
