Big oil firms short on output targets.

(Image: )

The Directorate General of Oil and Gas in Indonesia says the majority of oil contractors in the country failed to achieve their daily production target in the first four months of this year.

A total of 22 contractors from 37 oil companies operating in the country saw their production reports for the January-April period marked with red, indicating the countryCOs goal to produce on average 977,000 barrel of oil per day (bpd) was under threat, the directorate says. Among the flagging companies were state oil and gas firm Pertamina, France-based oil company Total E&P Indonesie, Medco E&P and British-based oil giant BP in West Java. C[pounds sterling]We do this because we want to give them warning and make sure they will meet their production commitments they made earlier,C[yen] director general of oil and gas Luluk Sumiarso says. However, when asked whether there would be penalties issued, Luluk says the government had decided to undertake a soft approach; encouraging improvements by publicly embarrassing the companies. However, he says he remained upbeat the country would enjoy an increase in oil production this year as the monthly average had surpassed the target set in the state budget. The report shows production missed the target only in January, which saw an output of 955,047 bpd, and that the figures increased to 986,848 bpd in February, 985,872 bpd in March and 978,960 bpd in April. The countryCOs biggest contributor remains US-based Chevron Pacific Indonesia, which accounts for almost half of national oil output. During the January-April period, Chevron produced an average 414,765 bpd, exceeding its commitment of 408,000 bpd for this year. However, the figure was still lower compared to last yearCOs period, which saw the company produce 425,478 bpd. Many contractors have posed lower targets for 2008 compared to last year due to depleting reserves and aging oil fields. Pertamina remained the nationCOs second biggest contributor for the period despite the lower-than-expected results.

A[umlaut] Copyright 2008 www.tradearabia.com

Copyright 2008 Al Hilal Publishing & Marketing Group

Provided by Syndigate.info an Albawaba.com company