15 Oil, gas projects to begin production in 2012
Sunday, December 18 2011 - 11:53 PM WIB
Deputy Chairman for Production of BPMIGAS Rudi Rubiandini said majority of the projects will begin production in middle and end of 2012.
?Therefore, on annual basis, there will be additional production 400 MMBTU of gas and 15,000 BOPD of oil,? he said Sunday.
The additional production will mainly come from KE-39, KE-40 and KE-50 wells in West Madura Offshore (WMO) operated by Pertamina Hulu Energi (PHE) WMO with production volume of 13,600 BOPD beginning in the 3rd quarter 2012 and Mahakam block operated by Total E&P Indonesia which is expected to begin production in 4th quarter with volume of 250 MMBTU and 20,600 BOPD.
The other big project is the Terang Sirasun Batur operated by Kangean Energy with gas volume of 300 MMBTU in second quarter.
Rudi said the maiden production of those projects will offset the decline of other oil and gas fields productions, in particular oil. ?We hope to cut the natural production decline from 12 percent to 3 percent,? he said.
To prevent natural decline of oil, BPMIGAS will also encourage oil and gas production sharing contractors (PSCs) to speed up their project developments. On the regulator?s part, it will fast forward the approval of plan of developments (PoD) submitted by oil and gas contractors.
In addition, it will encourage the oil and gas companies to apply enhanced oil recovery (EOR) to boost oil and gas productions.
Explorations are needed to increase oil and gas reserves which have tended to decline.
Rudi Rubiandini said proven oil reserves in Indonesia as of Jan 1, 2011 stood at 4.039 billion barrels of oil and 104.7 trillion cubic feet (TCF) of gas. On Jan 1, 2012, Indonesia?s gas reserves are projected to stand at 104.5 TCF of gas and 3.925 billion barrels of oil.
"Exploration is a must,? Rudi said.
He said BPMIGAS will encourage oil and gas contractors to prioritize the exploration of unused land under their concessions. The regulator is also mulling a plan to provide incentives to oil and gas companies conducting explorations in remote and frontier areas. (godang)