Bumi Siak prepares US$135m to explore 57 wells

The joint operating body (JOB) of PT Bumi Siak Pusako and state owned oil and gas company PT Pertamina will invest US$135 million to boost output from Coastal Plain Pekanbaru (CPP) block in Riau.

Bumi Siak Pusako is owned by Riau?s Siak regency.

Using the funds, both firms, that jointly operate the block, will drill a total of 57 wells in various fields of the block.

The investment consisting of capital expenditure and operating expenditure will be wholly borne by Pertamina, JOB general manager Karsana Aulia was quoted by the newspaper as saying.

?We want to increase the JOB?s oil production to 30,000 barrels per day (bpd) from 27,500 bpd at present as well as to maintain decline rate at 4 percent,? he said.

The increase in the investment from US$85 million in 2005 is in line with the government?s effort to drive national oil and gas production up to 30 percent.

He noted however that the investment plan had yet to be approved by oil and gas upstream regulator BP Migas. (godang)