Indonesia to Have 15 New Oil And Gas Projects Online in 2012

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Some 15 new oil and gas fields in Indonesia are expected to go online in 2012, with total expected production at 1.15 million standard cubic feet per day (mmscfd) and 32,200 barrels of oil per day (bpd), the country's energy regulator said on Sunday.

The projects, according to BP Migas, will add to the annual average of Indonesia, currently struggling with declining output, of 400 million cubic of gas per day and 15,000 barrel of oil per day.

"We would like to reduce declining pace to 3 percent from 12 percent," Rudi Rubiandini, BP Migas's deputy of operation, said in a statement.

Included in the 15 projects are the 39th, 40th and 54th projects at the West Madura offshore (WMO) block in East Java which are forecast to yield 13,600 bpd starting in the third quarter of next year.

The project at the South Mahakam 1 and 2 fields at the Mahakam block in East Kalimantan, seen to contribute 250 mmscfd of gas and 20,600 bpd of oil, will begin in the fourth quarter of 2012.

Another is the Terang Sirasun Batur field in East Java which will open in the second half of 2012. It is estimated to produce 300 mmscfd of gas.

Indonesia's oil reserves have been declining. As of Jan. 1 this year, reserves stood at 4.03 billion barrels of oil and 104.7 trillion standard cubic feet of gas.

For 2012, reserves will fall to 3.92 billion barrels of oil and 104.5 trillion standard cubic feet of gas.

"Our discoveries were less than our production last year," Rudi said in the Jakarta Post.

Discoveries in 2011 were only 215.5 million barrels of oil and 2.86 trillion standard cubic feet of gas. Actual production amounted to 329.9 billion barrels and 3.08 trillion standard cubic feet of gas.

On Friday, Haposan Napitupulu, BP Migas deputy of planning, said Indonesia's daily oil output may rise to as much as 950,000 barrels in 2012 from 903,441 barrels this year because of additional production from the new fields.

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