Indonesia's oil production to reach 755,000 b/d this year

JAKARTA, Aug. 13 (Xinhua) -- The oil production of Indonesia is estimated to reach 755,000 barrel per day (b/d) this year as the country has attempted to boost exploration, oil and gas upstream regulator (SKK Migas) said on Tuesday.

That is still below the oil lifting target stipulated at the country's development budget of 775,000 barrel per day, deputy chief of SKK Migas Fatar Yani Abdurrahman said.

Fatar admitted it is difficult to meet the target, but stressed that he would persistently keep encouraging contractors of cooperation contract (KKKS) to find new oil sources across the vast archipelagic country.

"On oil lifting, the target will not be met, we will strive to reach oil lifting at the level of 97 to 98 percent of this year's target. We will continuously boost output, find other sources wherever they are situated," he said.

Indonesia has been scrambling to ratchet up its dwindling oil production to comply with a rising domestic demand of energy.

Indonesia's crude oil production peaked 1.7 million barrel per day in the mid of 1990s. However, aging wells and the lackluster of new reserves in recent years have squeezed the production to about half, turning the country into a net oil importer, according to the SKK Migas.

To pare further downshift in oil output, the government has attempted to stave off obstacles in the country's oil and gas upstream industry, including taking down some rules and poor bureaucracy, which had weighted down efforts to attract investment in the sector.

Indonesia, the Southeast Asia's largest economy, is estimated to log a higher economic growth this year of 5.3 percent, after registering 5.17 percent last year.