JAKARTA (RambuEnergy.com) – State owned diversified energy company PT Pertamina, through its upstream subsidiary Pertamina Hulu Indonesia, has declared its commitment to maintain the oil and gas production of Mahakam Block, whose operatorship will be taken over by Pertamina from Jan. 1, 2018.
The current operatorship right, held by Total Indonesie, a giant French company, will expire at the end of this year. Total currently hold 50% of participating interest in the block and the remaining stakes is held by Inpex of Japan with 50%.
Total has been operating the block for more than 40 years and has been the largest contributor to the country’s gas production. Total and Inpex have been offer to still take part in the operation of the block through holding a combined 30%, although early the two companies wanted 39%.
Bambang Manumayoso, President Director of PT Pertamina Hulu Indonesia, the parent company of PT Pertamina Hulu Mahakam, said Pertamina has proposed production projection to the SKK Migas amounted to 48,000 barrels per day and 1,100 million standard cubic feet (MMSCFD) of gas. In order to reach the target PHM is developing 55 development wells and work over on 125 wells.
To achieve this, Pertamina sets aside investment of US$700 million next year or Rp 9.45 trillion in 2018. In addition, Pertamina will embark on cost efficiency in drilling activities. (*)