Indonesia’s mining sector to expand moderately this year

Sep 30, 2005 02:00 AM

The mining sector is envisaged to expand moderately by 1.5 % in 2005 compared with 3.9 % last year, said the Treasury in its Economic Report 2005/2006.
For the year, growth will emanate from higher production of natural gas, while oil production is expected to decline due to repair and maintenance works on oil installation facilities in the first half of 2005.

The total production of natural gas for the year is projected to increase by 5 % to 5,721 mm cfpd in tandem with the anticipated increase in new operational gas fields. Last year it recorded 5,449 mm cfpd.
During the first eight months of 2005, three new gas fields were discovered, namely Bunga Kesumba located in offshore east coast of Peninsular Malaysia and Golok Barat and Belum in Sarawak.

Meanwhile, based on Petroliam National’s (Petronas) planned work programme for 2005, oil production for the whole year is expected to decline by 2.4 % with an average production of 743,000 bpd. Last year it recorded 761,000 bpd.
In the report, the ministry said during the first eight months of 2005, crude oil production including condensates averaged 713,300 bpd, a reduction of 5.9 % from 757,900 bpd in the same period last year. In tandem with higher world crude oil prices, the price of Tapis Blend increased to all time high of $ 71.86 per barrel on Aug 29, 2005.

The report said that the escalating oil price was largely due to rising demand, particularly from China and US, amidst tight supply in the global oil market. The average US Light Sweet Crude price for the first eight months of 2005 increased by 42 % to $ 54.20 per barrel, compared with $ 38.21 per barrel during the same period last year, the Treasury said.
The report said the government had taken several steps to reduce the dependence on diesel and petrol including encouraging the use of natural gas and biodiesel for vehicles.

Source: Bernama
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