EXXON SETS TARGET OF MAXIMUM OIL OUTPUT IN CEPU BLOCK IN 2014

World’s largest oil company, Exxon, set target of maximum oil production in Cepu Blok 165,000 barrels a day in 2014.

Now, oil production in Cepu Blok only reached 20,000 barrels a day. To achieve the above target, some actions have been taken, amongst others, construction of facilities to support increase of production.

“We are making preparations for arrangement of tender in order to achieve the target”, Maman Budiman, Exxon’s spokesperson, told Business News via the phone.

Exxon Mobil and Pertamina own 45 percent, respectively, of shares in Cepu Blok located on Central Java and East Java border. And, the remaining 10 percent of shares are owned by the regional government.

Increase of production was expected to support increase of Indonesia’s oil production that started to decrease recently due to old oil wells and lack of new investments.

Indonesia’s energy demand increases by around 10 percent each year. Indonesia planned to stop import of oil in 2015 where Indonesia’s oil production for that year is set to reach 1.5 million barrels a day, according to President Director of Pertamina, Karen Agustiawan.

Coordinating Minister of Economy, Hatta rajasa, stated that the government set oil lifting target to one million barrels a day next year amid expectation of increase of investment this year to around USD16 billions.

Indonesia withdraws from OPEC in February 2008

Indonesia’s oil production decreased to 944,000 barrels a day last year due to decrease of investment. (E)