New wells required maintaining CPP?s production level

PT Caltex Pacific Indonesia has said its Coastal Plain Pekanbaru (CPP) oil block will not be able to produce 50,000 barrels per day of oil in the coming years if no new well is drilled.

?Pushing production to the limits at existing wells will not give optimum results. Moreover, there is a maximum limit with the oil wells at CPP fields,? Ismatullah Gani, vice president of PT CPI?s CPP Operations, said on Tuesday as quoted by Bisnis Indonesia daily.

Gani said in order to maintain CPP?s production at 50,000 bpd at its CPP block, PT CPI has continued to drill 29 new wells. Last year?s investment for the project amounted to US$20 million, he said.

?Investment at the 29 wells has been be able to keep oil production capacity on the CPP block at 48,300 bpd in 2001,? Gani said.

Gani said his company had also undertaken work over at CPP?s old wells so as to maintain production capacity.

Indonesia?s state oil company Pertamina recently signed 50-50 percent share agreement with Riau province on the CPP oil block which would take effect in August 2002.

Caltex?s contract to operate the CPP block should have been ended in August of 2001. But it was extended for a year to give Riau and Pertamina more time to prepare for the takeover of the oil block. (*)