Caltex's plan to develop 20 new oil wells approved

BP Migas, the government's regulator body for oil and gas exploration and production activities, has formally approved the plan of PT Caltex Pacific Indonesia (CPI) to develop 20 new oil wells in its concession area in Riau this year.

"We have approved the proposal of Caltex to drill 20 new oil wells, " Vice Chairman of BP Migas Trijana Karto Atmodjo said in Jakarta on Tuesday after attending a meeting at the Ministry of Energy and Mineral Resources.

President Director of PT Caltex said that the development of new oil wells would help the company increase output. He did not provide details, nor disclose the location of the new oil wells.

Trijono said in addition to Caltex, several other major oil producers had also committed to make efforts to ensure that the country's total oil production could be maintained at 1.075 million barrels per day this year.

"At least 10 production sharing contractors (PSCs) had expressed their commitment to increase production during the meeting which was chaired by Minister of Energy and Mineral Resources Purnomo Yusgiantoro," he said.

The PSCs attending the meeting included ConocoPhillips, Medco E&P Indonesia, Unocal, Caltex, Total E&P Indonesia and Pertamina.

Vice Chairman of BP Migas, Trijana also said that his office had also allowed Total to continue rig operation in the company's Sisi Nubi and Tunu offshore fields in East Kalimantan until the end of this year.

"We have agreed to extend the license of the rig so that Total could continue operate it until the end of this year," he said. (godang)