Correct--SPE to increase production to 5,000 bopd

(The following is the correct version of the SPE article. The company has yet started oil production from the field. We apologize for the error. (ed)

Privately owned oil company PT Sumatera Persada Energy (SPE) which operates the West Kampar production sharing contract in Riau will drill five more wells in its Pandalian working field this year in a bid to raise production to between 4,000 and 5,000 barrels of oil per day by next year, provided that the energy minister approves the plan.

Bambang Panudju Muritno, the company?s general manager, said on Wednesday SPE was in the process of clearing land for oil distribution using a gathering station belonging to UB-EP Lirik to its storage facility in Sungai Pakning.

Negotiation with UB-EP is being finalized, he said.

Under the current plan of development (PoD), SPE will produce 1,000 bopd from its two onshore wells in Pendalian field, each producing 500 bopd.

The minister of energy is close to approve the block?s PoD. According to the PoD, the company will offer a maximum of 10 percent in participating interest to the regional government.

The PoD has been changed twice since the West Kampar PSC was signed in 2005. Based on the previous PoD the SPE oil production would be distributed through a facility belonging to Chevron in Dumai. (bernard)