Indonesia 'plans oil independence by 2010'
Indonesia plans to boost the country’s ailing oil production to allow it to
become self-sufficient by 2010, local media reported.
Jusuf Kalla, vice president of state oil company Pertamina urged company
officials to increase production to between 1.2 million and 1.5 million
barrels per day by 2010 from present output levels around 920,000 barrels
per day, the Jakarta Post reported.
Kalla was speaking during an inspection of a refinery in Balikpapan, in East
Kalimantan.
“I am sure we can be self-sufficient by 2010 if we can start new plants in
Cepu and Natuna to produce oil immediately. This is the only way we can
satisfy domestic needs safely, while avoiding imports to get out of
skyrocketing oil prices," he said.
Opec member Indonesia has been a net importer of crude for the past few
years as production has dwindles at its oilfield amid low investment. The
government predicted Indonesia's average daily oil lifting at 927,000
barrels this year, down from 950,000 bpd last year. The country, which
subsidises fuel prices, has been hit hard by the meteoric rise in crude
prices this year.
Kalla said Indonesia should stop relying of foreign partners to produce the
bulk of its oil.
“Previously, we could just ask for a share from our partner, and then sit
back to wait for the profits. With such a high oil price, and our low
production capability, we can't do that anymore," he said, the
newspaper reported.
With crude oil prices hitting $124.70 a barrel today, Indonesia has to
allocate 126.8 trillion rupiah ($13.77 billion) on fuel subsidies, or about
13% of this year's government spending.
09 May 2008 06:45 GMT
| last updated:
09 May 2008 07:15 GMT
Latest jobs
