Indonesia might not meet oil production targets in 2012

03 February, 2012 BPMigas has reported on the country's production.

There are fears that Indonesia might not meet its production target of 950,000 barrels of oil per day (bpd) this year.

It comes after BPMigas reported that as of the end of January, the country was only making 886,508 bpd.

The Jakarta Post said that this was down from the average rate of production at the conclusion of 2011, which stood at 905,000 bpd.

"We have sent warning letters to the 36 oil companies," said head of BPMigas Raden Priyono.

The target in Indonesia is set by the 2012 state budget, with oil giants like Total E&P Indonesie, Chevron Pacific Indonesia and ConocoPhillips among the organisations.

However, Pri Agung Rakhmanto, from the ReforMiner Institute, told the Jakarta Post that the targets were unrealistic.
"No matter what we do to oil companies [who fail to achieve their targets], if the target is unrealistic, they won’t be able to achieve it," he noted.

Yesterday, it was reported that Indonesia's government is now hoping to make one of the world's largest palm oil and rubber companies in the world by combining state planters.

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