[Kabar-indonesia] 35-Year Low for RI Crude Oil Production: BP Migas [+Bakrie/Gas Pipeline]

[JoyoNews at aol.com]

also: Bakrie to start building Kalimantan-Java gas pipeline 

Indonesia's crude oil production falls to 35-year low 

JAKARTA, July 18 (Bloomberg) -- Crude oil production in Indonesia, 
Southeast Asia's biggest producer, fell to a 35-year low in June, the 
state oil and gas regulator said.

Crude oil production fell 1.1 percent to 908,000 barrels a day in June, 
Doddy Hidayat, deputy director of operations at BPMigas said. That's 
the lowest since 1971.

Condensate production rose 5.8 percent to 127,000 barrels a day in 
June, Hidayat said. Condensate is a type of light oil produced in 
association with natural gas. 

Indonesia's oil production has fallen for 10 years as its existing oil 
fields are depleted and it fails to develop new reserves. Cepu, the 
country's largest untapped oil deposit, won't produce crude until 
2009.

Indonesia, the second-smallest member of the Organization of 
Petroleum Exporting Countries, plans to produce an average of 
1.05 million barrels a day this year. The country produced 1.06 
million barrels of oil and condensate a day last year. 

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Bakrie to start building Kalimantan-Java gas pipeline 

JAKARTA, July 18 (Bloomberg): PT Bakrie & Brothers, Indonesia's 
biggest metal products manufacturer, said it will start constructing 
a US$1.26 billion pipeline connecting Kalimantan and Java next year.

Bakrie will start negotiating with producers in gas-rich Kalimantan to 
secure supply for the gas pipeline "immediately," Bakrie's President 
Director Bobby Gafur Umar told reporters in Jakarta Tuesday.

"The proven gas reserve will be sufficient to supply the pipeline for 
10 years," he said. "I'm sure the government will go all out to see 
this project gets completed."

Bakrie expects to finish building the pipeline by 2009, Umar said. 

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Joyo Indonesia News Service
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