Exspan Nusantara will spend $7.8 million to build new pipeline network
Saturday, December 2 2000 - 04:00 AM WIB
PT Exspan Nusantara, a subsidiary of the publicly listed PT Medco Energy International will spend at least US$ 7.8 million to build a pipeline network and other related facilities to transport part of its crude oil production from its oil fields in South Sumatera, Riau Pos reported on Saturday.
The company's director Rasyid Mangun Kusomo said on Saturday that the new pipeline network would be needed to transmit additional crude oil and natural gas production from Exspan Nusantara's oil fields in Muara Enim and Musi Banyuasin.
He said that the crude oil production is expected to increase to 70,000 barrels per day next year with the operation of new oil wells in the two oil fields in the two regencies. At present, the company produces 60,000 bpd of crude oil and 45 million cubic feet of gas.
Rasyid said that the additional production could no longer be delivered through the existing pipelines to Pertamina's oil processing center in Plaju. Therefore the additional oil production of about 10,000 bpd beginning next year would be delivered to a floating tank to be built near Bangka island.
He said that the company would spend about $2.5 million to build a 45-kilometer pipeline along the Tengguleng river to channel the crude to a temporary terminal, which will facilitate the operation of barges to transport the crude to the floating tank.
The company would spend about $1.8 million for the operation of temporary terminal and barges and about $3.5 million for the construction of the floating tank, Rasyid added.
The company's total sales from oil production are expected to increase to $458.9 million this year from $181.5 million last year. The oil tax paid to the government is expected to increase to $64 million next year from $24.4 million last year, Rasyid said. From gas, the company booked total sales of about $195.4 million in 1999 and about $142.3 million this year, he added.
According to Rasyid, the company's investment cost had reached a total $85 million by the end of this year. He said that the company still needs about $71 million to implement its expansion plan for the next three years. (*)