Indonesias oil and gas watchdog approves POD, POP in 2011

Indonesia's oil and gas watchdog BP Migas has given approvals on 41 plans of development (POD) and put on production (POP) on oil and gas blocks this year with the projection of new oil and gas reserve of 301.72 million barrel and 4 trillion cubic feet, spokesman of the watchdog Gde Pradnyana said here on Thursday. The move was made as Indonesia had attempted to boost its dwindling oil production to meet rising energy demand and contract commitments. "With the additional oil and gas reserve, the total oil and gas proven reserve on January 1 rises to 3.9 billion barrel and 104 cubic feet," the spokesman said. Seven out of the total approvals were agreements on development of oil and gas field for the first time (POD I), 13 were agreements on development of fields (POD), 5 were plans of future development (POFD) and 11 were put on production (POP), Praqdnyana said. The number of approval this year were higher than that of at the period of 2003 to 2010 which only reached 32 annually, he said on a statement. Indonesia's oil and gas production reached 2.4 million barrel oil equivalent in 2011, nearly similar with that of in 2010. Indonesia's oil production this year is forecast to reach an average of 904,000 barrel per day, lower than the target of 945, barrel per day, due to technical problem and extreme weather, R. Priyono head of the country's oil and gas watch dog BP Migas has said.Indonesia's failed to reach oil outputs target last year of 950,000 barrel per day due to leaking on piping. Indonesia, a net-oil importer country and provides a huge energy subsidy, could face risk of soaring global oil price that the government planned to cut the subsidy by prohibiting private cars to consume subsidized fuel on April 1, 2012. Rising oil price has been a risky policy, as it was unpopular, in the vast archipelago country of Indonesia. With the sovereign debt rating of investment grade by Fitch rating agency on Dec. 15, Indonesia may enjoy a rapid foreign direct investment in coming years and channels it to the energy sector. Besides, the passing of long-awaited land acquisition bill into law by the parliament recently also factored. Indonesian President Susilo Bambang Yudhoyono has warned the risk of the global economic crisis, particularly the soaring global oil prices, which he said much caused by speculation as the global economy weakening. But, he said that the country's well prepared economy was going to cope with its impact.