BP Migas Expects First Oil from Cepu Next Year

BP Migas believes that the Cepu block onshore Indonesia can start producing oil in 2008, said Kardaya Warnika, chairman of that country's upstream oil and gas regulatory agency.

"We ask that Cepu starts output in 2008, and it's possible," Kardaya noted.

Kardaya is optimistic that the acceleration can be conducted by using pipelines owned by Petrochina in East Java. "We are considering the available facilities. For example using a joint facility. It's possible, although the production won't be big as the other company's facilities are limited," he said.

The Cepu block is expected to help increase domestic oil output. The block, operated, by ExxonMobil and Pertamina, may reach a peak production of 165,000 barrels a day.