Environmental law cuts Pertamina EP's production

Pertamina EP, a subsidiary of state oil and gas company Pertamina, has seen its production affected by the new environmental law No 32/2009.

Haposan Napitupulu, president director of Pertamina EP Cepu, said on Wednesday the JOB Pertamina-PetroChina East Java had lowered its production to 41,000 barrels per day from 48,500 barrels per day in accordance with the law, which limits the gas flare volume at oil field at a maximum of 14 MMSCFD.

He said the joint venture was considering to modify the technology to process the gas flare into LPG or apply gas injection.

Bagus Sudaryanto, Pertamina EP's operation director, said the company was still calculating the decline in oil and gas production as a result of the law.

17 development wells in the northern part of Sumatra and the western part of Java and a number of other exploration wells have been put on hold as the state company has yet to obtain permits to implement the environmental management action and environmental monitoring action, Sudaryanto added.

The wells have the potential to produce 2,500 bpod. (godang/bernard)