Indonesian Finance Ministry issues incentives to boost oil output

The Ministry of Finance announced new fiscal incentives on Saturday (January 4) to boost the country's oil production, which is likely to be below this year's target. Indonesia is expected to produce 899,000 barrels per day this year, below the target of 950,000 bpd in the 2007 budget. Indonesia has been offering new exploration rights and financial incentives for oilfields in a bid to stem a steady decline in production because of its ageing wells. The incentives announced in a bylaw include eliminating tariffs for importing equipment used in oil, gas and geothermal production, such as drilling platforms, offshore production and undersea exploration facilities, Reuters reported. (http://www.antara.co.id/en/arc/2007/12/31/indonesia-finance-ministry-issues-incentives-to-boost-oil-output/)