Hess to scale back 2013 drilling program

By Godang Sitompul

Upstream authority SKK Migas said that US oil and gas firm Hess Corporation plans to scale back its drilling program this year to cover only four wells from the initial plan of eight wells as set under the work program and budgeting (WPnB).

The drilling program will only cover wells within the Pangkah block in East Java, SKK Migas said. It added that there will be no activity this year at the other blocks operated by Hess in Indonesia.

?Perhaps because they?re concentrating in the Pangkah block. So far this year, Hess has drilled three wells out of the eight wells planned under the WPnB. They plan to revise it to four wells only,? Head of Survey and Drilling Division at SKK Migas, Arief Fanshuri told Petromindo.com Tuesday.

He said that at the Pangkah block, Hess is currently drilling the third wells, to be followed next with the fourth well. ?Wells that have been drilled are UPA11-st and UPA12X. It?s currently drilling UPA14X, to be followed with UPA6X,? Arief said.

Hess is currently divesting its assets in Indonesia, part of the company?s strategy to divest oil and gas assets in various countries as it aims to focus on its US operation.

According to the Oil and Gas Book 2013 published by Petromindo, the firm is the operator in four blocks, namely Pangkah PSC, in which it has a 75 percent stake, Semai V PSC (100 percent), South Sesulu PSC (100 percent), and Offshore Timor Sea I PSC (100 percent).

It also owns non-operator stakes in another three blocks, namely Natuna Sea Block A PSC (23 percent), Kofiau PSC (42.5 percent) and West Timor PSC (49 percent).

Editing by Reiner Simanjuntak