JAKARTA, Nov. 21 (Xinhua) -- Japan Petroleum Exploration Co. Ltd planned to raise investment up to 900 million U.S. dollars in Indonesia's Kangean oil and gas field in East Java province by 2012, President and General Manager Kangean Energy Indonesia Keisuke Inoue said here Wednesday.
The general manager told a press conference after meeting Indonesian Vice President Jusuf Kalla at his office here that currently the company's investment in the field had reached 400 million U.S. dollars.
"The total investment in Kangean will be from 800 million to 900 million U.S. dollars up to 2012," he said.
Inoue said that the field was targeted to begin production in 2010.
On the same occasion, Executive Vive President of Japan Petroleum Exploration Co. Ltd Osamu Watanabe said that the potential of the gas and oil in the filed was huge.
Indonesia, which vows not to rise oil price, may have a problem with its domestic subsidy bill if global oil prices reach 100 U.S. dollars a barrel and remain stubbornly high, a senior government official has said.
Crude oil price nearly reach 100 U.S. dollar per barrel recently partly due to high demand and global political uncertainty. Indonesia has attempted to boost crude oil output as the country has failed to find new oilfields fast enough.
The country's aging wells and lack of investment in the energy sector have pushed the country to become a net crude oil importer, although it is still a net energy exporter, thanks to a large amount of supply of natural gas and coal.
Indonesia increased fuel prices sharply in October 2005 to cut crippling energy subsidies, but they are still among the cheapest in the world.
Oil price increases are a sensitive issue in Indonesia. In May 1998, a big rise in fuel prices triggered rioting that helped topple former President Suharto.
The general manager told a press conference after meeting Indonesian Vice President Jusuf Kalla at his office here that currently the company's investment in the field had reached 400 million U.S. dollars.
"The total investment in Kangean will be from 800 million to 900 million U.S. dollars up to 2012," he said.
Inoue said that the field was targeted to begin production in 2010.
On the same occasion, Executive Vive President of Japan Petroleum Exploration Co. Ltd Osamu Watanabe said that the potential of the gas and oil in the filed was huge.
Indonesia, which vows not to rise oil price, may have a problem with its domestic subsidy bill if global oil prices reach 100 U.S. dollars a barrel and remain stubbornly high, a senior government official has said.
Crude oil price nearly reach 100 U.S. dollar per barrel recently partly due to high demand and global political uncertainty. Indonesia has attempted to boost crude oil output as the country has failed to find new oilfields fast enough.
The country's aging wells and lack of investment in the energy sector have pushed the country to become a net crude oil importer, although it is still a net energy exporter, thanks to a large amount of supply of natural gas and coal.
Indonesia increased fuel prices sharply in October 2005 to cut crippling energy subsidies, but they are still among the cheapest in the world.
Oil price increases are a sensitive issue in Indonesia. In May 1998, a big rise in fuel prices triggered rioting that helped topple former President Suharto.
