Chevron Riau Oil Deliveries May Resume Today, SKK Migas Says

Oil deliveries from Chevron Corp. fields in Indonesia’s Riau province are likely to return to normal today after delays caused by a pipeline leak, according to the country’s energy regulator.

The Feb. 5 breach on the 76-kilometer (47 miles) line disrupted deliveries of oil from the Bangko area to the Dumai terminal, Gde Pradnyana, deputy of operations at SKK Migas said in e-mailed statement. Production at Chevron’s fields has not been affected and output is being stored in tanks amid repairs to the pipe, he said.

PT Chevron Pacific Indonesia produced 327,692 barrels of oil a day as of Jan. 27, representing about 40 percent of Indonesia’s oil output, according to data from the regulator.

Chevron Pacific Indonesia’s response team has contained the leak and begun clean-up work, Alexander Yelland, a company spokesman, said in an e-mailed statement yesterday. “We are working to minimize any impact to production” he said. “The cause of the incident is currently being investigated.”

The pipeline delivers output from the Duri field in the Rokan oil block, Yelland said.

Indonesia is trying to stem a decline in maturing fields amid a lack of new discoveries. Oil output may shrink to 830,000 barrels a day this year, the lowest since 1969 when Indonesia produced 742,000 barrels, according to data from SKK Migas on Feb.1. That would also be less than the government’s sales target of 900,000 barrels a day in the 2013 state budget.