Trijana Kartoatmodjo, the Deputy Head of the Upstream Oil and Gas Executing Body (BP Migas), says that daily oil production in Indonesia will continue falling unless new fields are developed. Currently oil production is at 1.1 million barrels per day while demand is at 1.3 million barrels.

Trijana says that oil production is falling by 1.2% a year while oil demand is rising by 1.5%. In 2007 it is estimated that daily production will be at 995,000 barrels, falling in 2008 to 982,000 barrels and falling again in 2009 to 971,000 barrels, while daily consumption of oil in 2007 will likely be at 1,365 million barrels per day, rising in 2008 to 1,443 million barrels and in 2009 to 1,505 million barrels.

BP Migas is therefore hoping to begin drilling of 200 wells between 2007 and 2009. Trijana went on to say that these 200 wells, located in Ambon, Cepu, the northern coast of West Java, Jambi, the Madura Straits and Papua, had the potential to produce 3.8 billion barrels of oil and 17 trillion cubic meters of gas. Trijana said:

We hope there are new fields. Otherwise, it will difficult to meet domestic energy needs, let alone export.Meanwhile Andand Bachtiar, a geologist from the Bandung Institute of Technology, raised some doubt about the target of drilling 200 wells between 2007 and 2009.

Are they production wells or exploration wells? If the existing wells have been developed, and the production is increased, it may be up to 200 wells. But if they’re exploration [new] wells, then that’s nonsense.