Oil contractors cut down drilling activities in 200 wells

Oil and gas production sharing contractors in the country are reducing drilling activities in almost 200 wells, both development and exploration wells, this year, which would affect production next year, Bisnis Indonesia reported on Thursday.

The paper quoted Gunawan Sutadiwirja, Head of Deputy for Planning Control at the upstream oil and gas authority SKK Migas, as saying that according to the temporary results of the ongoing revision of work plan and budget of the oil and gas contractors, drilling activities are being reduced in 176 development wells and 20 exploration wells.

He said that this would not affect the country?s oil production this year. As long as the Banyu Urip field in Cepu Block can reach maximum production level of 205,000 bpd, the country?s oil production this year can reach 822,000 bpd, or higher than the 825,000 bpd set in the revised 2015 state budget.

The drop in drilling activities this year, however, may affect next year?s production, which is targeted at 830,000 bpd under the proposed 2016 state budget, Gunawan explained.

He said that PT Pertamina EP, a subsidiary of state-owned oil and gas firm PT Pertamina, has the largest cut in drilling activities this year, from 126 development wells to only 37 wells.

Meanwhile, Chevron Pacific Indonesia cut down drilling activities by 2-3 percent, the paper said.

Total E&P Indonesie cut drilling activities in a dozen of wells, said Arividya Noviyanto, Vice President for Human Resources, Communications, and General Services at the company. (*)