Energy minister summons 25 oil contractors

Jakarta (ANTARA News) - Energy and Mineral Resources Minister Purnomo Yusgiantoro on Friday summoned 25 oil contractors who had yet to meet their oil production targets as set in the revised 2008 State Budget.

After meeting with the oil contractors, the minister said that most of them had not yet reached their production targets due to operational constraints.

"We will assist them so that they can meet their production targets," the minister said.

Among the oil contractors were PT Pertamina EP, BOB Pertamina-BSP, Kondur Petroleum, JOB PN-Golden Spike, Hess-Indonesia Pangkah, Klrez Energy, Kangean Energy Indonesia, Petroselat, Petrochina Bangko, Camar Resources Canada, JOB PN-Costa International Group, Medco EP Nus Lematang, Lapindo Brantas and Mobil Cepu Ltd.

The minister said that of the 25 contractors, nine had achieved 95 percent of their production targets, 14 were still under 95 percent and two were still not in production.

Yusgiantoro said the 25 oil contractors were part of the 37 oil contractor companies which had been in production.

He said 12 other oil contractors had met their targets set at the revised 2008 state budget.

"Although there are oil contractors which have not yet achieved their targets, we are optimistic that the overall production target set in the revised state budget at 977,000 barrels per day would be achieved," the minister said.

Up to June 15, 2008, Indonesia`s oil and condensate production had reached 978,000 barrels per day.

Yusbiantoro said that constraints being faced by the oil contractors included limited rigs, land overlapping and clearance, lack of production facilities, operational disturbance such as damage to compressors, power cuts and infrastructure facilities.

Last week, President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla held a closed-door meeting with top executives of gas and oil companies.

"Issues related with oil and gas were discussed in the meeting. President Yudhoyono explained that the Indonesian government has made a series of efforts at international level to respond to current developments in the energy situation," Yusgiantoro said.