Indonesia Sept crude oil output falls to 34-yr low
Stock Market News and Investment Information | Reuters.com
JAKARTA, Oct 4 (Reuters) - Indonesian crude oil production sank to a 34-year low of 927,500 barrels per day (bpd) in September and it would be a net importer this year as it fell short of its output target, an industry source said on Tuesday.
Another official at the mines and energy ministry said the output level last month, down 1.3 percent from 940,000 bpd in August, would be one of the lowest since the 1970s. The previous low was 934,000 bpd in June.
"There are some technical problems in several wells," the industry source told Reuters.
"It will be very difficult for Indonesia to produce 1.075 million bpd of crude and condensate this year because of natural decline from ageing fields," he said, referring to the country's production target.
But another source said Chevron Corp. (CVX.N: Quote, Profile, Research), the biggest oil producer in the country, pumped 465,000 bpd in September, up from 455,000 bpd in August.
Indonesia also produced 129,000 bpd of condensate last month, down from 131,000 bpd in August. Condensate is excluded from output quotas set by the Organization of the Petroleum Exporting Countries (OPEC).
"I think Indonesia will be a net crude oil importer this year, because imports will exceed exports for most months this year," the first source said.
Indonesia, OPEC's only Asia-Pacific member, was a net importer of crude throughout the second quarter of this year, as its ageing oilfields decline at a 5 percent rate or more a year. It first became a net importer during several months last year, casting doubt on its OPEC membership.
Declining crude output has forced the country to sell rupiah for dollars to pay for oil imports, hitting the currency and hurting the economy.
Indonesia sharply raised oil product prices over the weekend to ease the burden of costly subsidies that have been driven higher by surging global oil prices.
JAKARTA, Oct 4 (Reuters) - Indonesian crude oil production sank to a 34-year low of 927,500 barrels per day (bpd) in September and it would be a net importer this year as it fell short of its output target, an industry source said on Tuesday.
Another official at the mines and energy ministry said the output level last month, down 1.3 percent from 940,000 bpd in August, would be one of the lowest since the 1970s. The previous low was 934,000 bpd in June.
"There are some technical problems in several wells," the industry source told Reuters.
"It will be very difficult for Indonesia to produce 1.075 million bpd of crude and condensate this year because of natural decline from ageing fields," he said, referring to the country's production target.
But another source said Chevron Corp. (CVX.N: Quote, Profile, Research), the biggest oil producer in the country, pumped 465,000 bpd in September, up from 455,000 bpd in August.
Indonesia also produced 129,000 bpd of condensate last month, down from 131,000 bpd in August. Condensate is excluded from output quotas set by the Organization of the Petroleum Exporting Countries (OPEC).
"I think Indonesia will be a net crude oil importer this year, because imports will exceed exports for most months this year," the first source said.
Indonesia, OPEC's only Asia-Pacific member, was a net importer of crude throughout the second quarter of this year, as its ageing oilfields decline at a 5 percent rate or more a year. It first became a net importer during several months last year, casting doubt on its OPEC membership.
Declining crude output has forced the country to sell rupiah for dollars to pay for oil imports, hitting the currency and hurting the economy.
Indonesia sharply raised oil product prices over the weekend to ease the burden of costly subsidies that have been driven higher by surging global oil prices.
posted by Marcel at 3:49 AM
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