Jeruk oil field may have less reserves than earlier forecast
Thursday, August 10 2006 - 01:04 AM WIB
Even though Jeruk oil discovery is in the phase of exploration, the oil reserves is likely to be only half of a previous forecast of 170 million barrels, according to BPMIGAS deputy chief Achmad Luthfi.
Luthfi said that Santos was expected to certify reserves at Jeruk oil field before developing it to avoid possible misunderstanding in the future.
Santos has been testing oil found at its Jeruk-3 appraisal well. It said earlier it would likely reduce its reserves estimate for the oil discovery
It said the height of the Jeruk hydrocarbon column was probably only 145 meters, compared with a previous estimate of 379 meters, but that further testing was required to fully determine reserve levels.
Santos started drilling activities at Jeruk-3 in January following ambiguous results and indications of complex geology from Jeruk-1 and -2 in 2004.
Despite the revised Jeruk estimates, exploration spending by foreign oil contractors is expected to rise to $700 million in 2006 from $500 million last year, Luthfi said.
Lufthi is optimistic that foreign oil contractors will drill around 75 exploration wells in 2006 with a cost of about $700 million. Last year, foreign oil contractors drilled around 54 exploration wells.
Foreign oil contractors were expected to spend $1.7 billion on production development of 613 wells this year, compared with $1.5 billion on 563 wells in 2005, Lufthi said.
The Jeruk field located in Sampang PSC. Santos (Sampang) Pty Ltd (operator) owns majority stake in the Sampang PSC with 40.5%. Other participants in the Sampang PSC include Singapore Petroleum Sampang Ltd 36.0%, Cue Sampang Pty Ltd 13.5% and PT Petrogas Oyong Jatim. (*)