BPMIGAS sees production potential losses in March
Tuesday, March 13 2012 - 08:47 AM WIB
Upstream authority BPMIGAS Chairman R. Priyono said the authority sees potential loss in oil and gas production of up to 19,200 barrels of oil per day and gas of 20 mmscfd respectively in March.
The loss was due to various reasons including problem in securing permit, delay in drilling preparation and lengthy permit process.
Priyono estimates national oil production to reach only 891,000 bopd, far below original government estimation in the 2012 State Budget of 950,000 bopd.
Priyono said each oil and gas production sharing contractor has different problems that caused production to be below target. PT Sele Raya, as a case in point, could suffer potential production loss of up to 1,000 bpd due to permit problem.
VICO may suffer potential production loss of 500 bopd and 15 mmscfd of gas due to delay in the drilling of Nilam, Mutiara and Badak fields. The compnay has yet to receive permit for oil and gas extraction from East Kalimantan regional government, said Priyono.
PT Mosesa Petroleum, which operates Tonga PSC, may suffer oil production potential loss of 2,400 bopd due to delay in land permit. Odira Energy also could record production loss of 1,100 bopd due to delay in reaching a deal on facility sharing agreement with Pertamina EP.
PT Seleraya and Medco SCS may also record combined potential loss of 2,000 bopd due to oil land transportation problem.
Petrochina Jabung also projected to record potential production loss of 2,300 bopd and 5 mmscfd due to delay in the issuance of environmental impact assessment from the Environment Ministry.
Mobil Cepu Ltd, the operator of Cepu Block, in East Java may also suffer potential production decline of 5 mmscfd of gas due to delay in the completion of upgrading facility.
Some PSCs face financial problem that disrupted their production, such as being encountered by JOB P-GSIL and PT SPE, which could lead to potential production loss of 1,400 bopd.
PHE WMO and JOB Pertamina-Medco was delayed delivery of rig to be used by its WMO block in offshore East Java.
Editing by Roffie Kurniawan