Thursday, April 22, 2010

Indonesia To Stop Importing Oil In 2015

JAKARTA, April 22 (Bernama) -- Indonesia's state-owned oil and gas firm PT Pertamina will stop importing oil in 2015 as the country's oil production is targeted to increase to over 1.5 million barrel per day, China's Xinhua news agency reported President Director of the firm Karen Agustiawan as saying here Thursday.

The statement comes amid good investment prospects in the country which is expected to help boost development of energy sector, particularly oil.

"Starting in 2015, we will stop importing gasoline from abroad and our domestic refineries will be sufficient," Karen told lawmakers in a hearing at the parliament building here.

Indonesian Coordinating Minister Hatta Rajasa said on April 11 that the government plans to raise the country's oil production up to one million barrel per day by 2011 by boosting exploration at new oil fields amid higher expectation on investment target this year of over US$15.988 billion.

Higher investment expectation is hoped to boost the country's dwindling oil production in the last several years due to aging wells and lack of investment.

Increasing oil demand and dwindling oil production has made Indonesia to become net oil importer since February 2008, and then exits from OPEC.

Indonesia's oil production decreased to 944,000 barrel per day last year due to the decrease on investment which stood at US$12.18 billion, lower than the target of US$13.78 billion.

Indonesia's energy demand rises over 10 percent annually, according to Energy and Mineral Resources Ministry.


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