Medco E&P to invest $10 million for Tarakan field

PT Medco E&P Indonesia plans to invest up to US$10 million to explore three new wells in the Tarakan field, one of the company?s programs to meet production target of 6 million standard cubic per day (MMSCFD) of gas and 4,000 barrels of oil per day (bopd), Bisnis Indonesia reported.

Hendro Wajyudiatmoko, the operation manager for Tarakan and Sembakung, said the exploration of new wells was needed because the production in the existing wells had begun to decline.

?The production at the existing wells have begun to decline because they have already been old,? he said last week.

In addition to conducting exploration activities in the Tarakan field, Hendri said that Medco would also begin exploration activities in the Sembakung and Simenggaris fields. ?Because they are still in exploration stage, the potential reserves in the fields are still unknown,? he added.

Oil production at the Tarakan field is about 2,209 bopd and 2.9 MMSCFD of gas at present. A part of gas production is distributed to more than 4,000 houses in Sebengkok, Selumit, Pamusiam and Karang Balik villages in Tarakan.

Hendri said that between 2 and 3 MMSCFD are supplied to state electricity company PLN?s power plant in Tarakan. According to him, PLN actually needs between 5 and 6 MMSCFD, but Medco could not meet the demand because of the decline in gas production. (*)