BOB-BSP reconsiders exploration program amid weak oil price

By Bernard Loebs

PT BOB-BSP, the operator of the Coastal Plains Pekanbaru (CPP) block, in Riau Province, is reconsidering an earlier plan to carry out exploration activities at the Taman Nasional Zamrud forest conservation area amid the lingering weak oil price.

This was said by Novi Sugianto, Senior Operation Manager at BOB-BSP to Petromindo.com. ?We are reviewing the exploration plan considering that oil price remains low.? Novi said.

BOB-BSP is a joint venture between PT Bumi Siak Pusako, a company owned by the Riau provincial administration, and state owned oil and gas firm PT Pertamina.

Novi said that aside from the oil price factor, which affects the economic feasibility of the project, the joint venture?s production share contract which is set to expire in 2022 is also a factor in the company?s decision to review the planned exploration program. ?For certain, there will be no exploration this year,? Novi said.

The CPP block is projected to produce 12,900 bpd of oil this year, down from last year?s 14,025 bpd.

The CPP block spans over four Regencies of Riau province, that is, Siak, Bengkalis, Pelalawan and Kampar.

Editing by Reiner Simanjuntak