Pertamina contractors plan to raise production
Saturday, July 15 2000 - 04:00 AM WIB
The oil contractors of the state-owned oil and gas firm Pertamina plan to raise their oil production amid high commodity price, according to director general of oil and gas Rachmat Sudibyo.
Rachmat didn't provide details.
"The KPS contractors plan to raise production because of the high oil price," he told reporters.
The oil price is now hovering at between US$29-$32 per barrel. In a bid to lower the oil price, OPEC members excluding Iraq agreed on June 21 to raise production by 708,000 barrel per day to reach a total of 25.4 million bpd.
The raise in the OPEC production causes Indonesia's production quota to increase to 1.31 million bpd or a raise of 37,000 bpd.
Rachmat expressed optimism that Indonesia could meet its production quota.
A Pertamina official had earlier said that the oil and gas firm had already called on its contractors, mainly foreign contractors, to raise production but they could not do it immediately as they needed more time to develop the storage.
The official also said that Pertamina was planning to provide incentive to encourage oil companies to develop the marginal oil fields and deep water oil production to meet the production quota.(*)