Chevron expands Duri production

November 26, 2008 JAKARTA -- Chevron has announced that it has kicked off additional crude production from the giant Duri onshore field in Sumatra, Indonesia.

Chevron said that first oil had flowed from the North Duri Field Area 12 on 14 November with levels due to hit 34,000 b/d by 2012. Flows from the field are due to be increased next year through the use of steam-flood technology, according to Chevron. The Duri field produces around 200,000 b/d of crude through the use of large-scale steam injection to increase the viscosity of oil deposits.

Despite declining output, the Duri field is still crucial to Indonesia's crude production. It's daily output of 200,000 b/d accounts for around 23.4% of Indonesia's current total daily production of 851,435 b/d recorded last month by BPMIGAS. Additional peak production at North Duri due to come online in 2012 only represents around 4% of current output, so it is not likely to have a significant effect on a national level. However, the launch of production at the Banyu Urip oilfield (which contains an estimated 350 million barrels of recoverable reserves) expected next year, does raise the possibility of reversing the country's ten-year decline in crude oil output.

© 2008, Global Insight Limited.