Caltex to focus expansion on central Sumatra
Wednesday, May 30 2001 - 07:30 AM WIB
The country's largest oil operator PT Caltex Pacific Indonesia (CPI) said Tuesday that it was keen to expand its upstream business in the country and would focus on the central part of Sumatra its short-term expansion strategy.
The company's vice president for technical planning and new ventures Dave Birsa told Petromindo.com in an interview that Caltex chose to focus on Central Sumatra because it was close to its oil operation in Riau and any new discoveries in the area would support the existing operation in the province.
"In the short term, what we are interested in is to leverage what we already have in Central Sumatra. So, we are looking (for new businesses) mostly at central Sumatra," Birsa said.
Caltex recently signed a production sharing contract (PSC) with state oil and gas company Pertamina to acquire the Kisaran onshore block in North Sumatra.
"The strategy there is to try to find 'modest' size reserve, either gas or oil which can be used to leverage what we already have," said Birsa.
"Ideally we hope to find natural gas, which can be used for fuel use in our operation. However, there may be chance that we find some oil which could be brought into our existing infrastructure," he added.
Birsa admitted that the main reason for Caltex to acquire Kisaran was to anticipate the increasing need of gas at Caltex's oil operation in Riau.
Currently, Caltex consumes 305 million cubic feet per day (MMCFD) of natural gas supplied from gas producers in southern part of Sumatra. The volume will increase to 425 MMCFD in early 2003.
The gas is used to generate steam for the company's oil operation.
As part of the expansion program, said Birsa, last November, Caltex had also signed a memorandum of understanding (MOU) with Pertamina to study the possibility of setting up a joint venture to develop West Jambi area in South Sumatra, which is currently operated by Pertamina.
"We are going to conduct joint study to look at reserve potential using Pertamina's data and our technology and project management skills. That study is almost completed now, "he said. (alex)