November 25, 2008: 10:44 PM EST
RIAU, Indonesia -(Dow Jones)- Chevron Pacific Indonesia, or CPI, Wednesday kicked off oil production at a new field in central Sumatra, which will produce 1,000 barrels a day before increasing to 34,000 b/d in 2012.
"It needs $450 million in investment," Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in a ceremony marking the official opening of production from North Duri Area 12.
The Indonesian unit of U.S. Chevron Corp. (CVX) will also in the near future develop areas 13 and 14 of the North Duri field, which are expected to commence production in 2014, Purnomo said.
CPI President Director Suwito Anggoro said areas 13 and 14 could each produce 45,000 b/d of crude oil.
Raden Priyono, head of the upstream oil and gas regulatory body BP Migas, said Chevron will invest a total of $1.3 billion to develop the three areas, helping to slow the decline in CPI's overall crude output from fields in its concession in Riau.
CPI currently produces 408,000 b/d of crude oil, nearly half of Indonesia's total output.
-By Deden Sudrajat, contributing to Dow Jones Newswires; 62-21 39831277; I- Made.Sentana@dowjones.com
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