JAKARTA, April 19 - Indonesia's oil output may hit 917,000 barrels per day, falling short of this year's target of 965,000 bpd and below last year's level due to environmental and other issues, an energy watchdog official said on Monday.
Indonesia has said previously it would produce 965,000 bpd of crude oil and condensate this year, compared with 949,100 bpd in 2009, and 1.5 million bpd in the 1990s.
"We still hope to achieve output of 965,000 bpd, but considering several problems, oil production may fall to 917,000 this year," Priyono, the chairman of watchdog BPMIGAS, told a parliamentary commission hearing.
He said several oil contractors had managed to slow down the decline in production by maximising the output of several oil fields, but the annual rate of decline was still between 12 percent to 20 percent.
"However, most of Indonesia's oil fields are ageing and we can't avoid the fall in production," Priyono said.
Environment Minister Gusti Muhammad Hatta told Reuters in October 2009 that he intended to enforce a new environment law that allows the government to cancel the operating permit of any company found to be breaching the terms of its environmental impact assessment.
Energy officials and companies have expressed their concerns about the impact of the new law although implementation of the law is expected to take time.
Indonesia has struggled to attract fresh investment to develop new fields, partly due to uncertain regulations and red tape. Many of its remaining unexploited fields are in remote areas or under deep water, requiring high levels of investment and specialised technology.
Major global oil contractors working in Indonesia include Exxon Mobil, Chevron, ConocoPhillips, and France's Total.
Proven and potential oil reserves in Indonesia dropped to 8.3 billion barrels last year, down from 9.6 billion barrels in 2001.
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