Gulf Indonesia to invest US$150 in the next three years
Friday, February 16 2001 - 04:00 AM WIB
Gulf Indonesia Resources Ltd. has disclosed that it will invest up to USS$150 million in the next two to three years in the oil and gas sector to double its oil and gas production in Indonesia.
Gulf Indonesia president William T. Fanagan said on Thursday (Feb. 15) that the fund would be invested in infrastructure, exploration activities and development of its existing oil and gas fields.
"This large amount of investment we will invest here shows how we are confident about the future of Indonesia," Fanagan said during a reception celebrating Gulf Indonesia's 40th anniversary.
Earlier on the day, Fanagan and other directors of Gulf Indonesia met with President Abdurrahman Wahid, accompanied by state oil and gas Pertamina's production sharing management director Iin Arifin Takhyan.
Iin said after the meeting that the President asked Gulf Indonesia to increase its investment in Indonesia, and the government would give facilities for the interest of investors in the oil and gas industry.
Fanagan said Gulf Indonesia's investment plan aimed at increasing its oil and gas reserves. Gulf's gas reserves currently total at least 2 trillion cubic feet. "For this year, Gulf expects that its exploration activities would expand its deposit to between 3.5 trillion to 4 trillion cubic feet.
To increase its reserves, the company will also join in the tendering of 21 offshore deep-water oil and gas fields, which would be conducted by the government later this month.
According to Fanagan, Gulf Indonesia is currently operating more than 10 oil and gas fields, both onshore and offshore, covered by 12 production-sharing contracts with Pertamina. Oil and gas fields covered by four of those contracts have been in the production stage, producing a total of 30,000 barrels per day of crude oil and 80 million cubic feet of gas per annum or equivalent with 46,000 barrels per day of oil.
Most of its gas has been sold to Singapore through piping line.
More than half of Gulf's gas production is produced from its gas field in Central Sumatra, known as Corridor Block, in which Gulf has 54 percent interests.
Other onshore fields belonging to Gulf include Jambi Enhanced Oil Recovery (with Gulf's ownership of 60 percent), South Jambi B (45 percent), Tungkal (100 percent) and Calik Block (60 percent). And offshore fields include Kakap Block in West Natuna (31.25%), Northwest Natuna Block I (30 percent), Pangkah Block (12 percent), Sebuku (100 percent) and Ketapang (50 percent). (*)