Bumi Siak, Pertamina plan to drill 20 wells in CPP block

The consortium of PT Bumi Siak Pusako and state oil and gas company Pertamina has planned to drill 20 new wells at the Coastal Plains Pekanbaru (CPP) block in Riau this year with a total investment of US$25 million.

Bumi Siak Pusako?s director Azaly Djohan was quoted by Bisnis Indonesia as saying that the new drilling plan aimed to raise the block's output to between 40,000 and 50,000 barrels per day (bpd) of oil this year.

The drilling of each of the wells cost between $800,000 and $1.5 million, Azaly said, adding that the consortium had thus far drilled two wells, which both showed ?expected results?

The block, which the consortium took over from PT Caltex Pacific Indonesia last year following the expiry of the latter?s contract, currently produces 26,800 bpd of oil. The block?s output reached 70,000 bpd when CPI operated it, but the output has been declining ever since the consortium took over the operation. The decline in the output has raised the concerns of the country?s upstream authority BP Migas, who said the decline would cause a significant impact on the government?s oil revenue.

Azaly denied reports that the output had declined due to conflicts among shareholders, citing that flood had troubled the operation and thus caused a decline in the block?s output. (*)