Oil production at Tiaka block suspended amid weak price

JOB Pertamina Medco E&PTomori Sulawesi said it has decided to temporarily stop oil production at the Tiaka field of the JOB Tomori working area in the regency of Morowali Utara, Central Sulawesi Province, due to weak oil price environment.

Field Manager of JOB Pertamina Medco E&P Tomori Sulawesi, Susanto was quoted by Antara as saying Wednesday the company will resume operation of the oil field if the oil price has exceeded US$60 per barrel.

"If the price is below $60 per barrel the company will suffer operating losses," Susanto said.

Susanto and the representative of the upstream oil and gas authority SKK Migas for Kalimantan-Sulawesi region had reported to the Central Sulawesi Governor Longki Djanggola about the firm?s decision to stop operation of the oil field.

JOB Tomori is 50 percent owned by state owned oil and gas firm PT Pertamina, 30 percent by Medco E&P Tomori Sulawesi and 20 percent by Tomori E&P Limited. The working area comprises two fields, namely Tiaka field in Morowali Utara regency, and Senoro field in Banggai regency. (*)