Oil production from West Madura PSC down: Pertamina

PT Pertamina Hulu Energi (PHE), a subsidiary of state owned oil and gas company Pertamina, is asking the government to soon extend the contract for the operation of the West Madura block which will end in May 2011.

The company?s spokesman Ali Mundakir said in Jakarta on Thursday that uncertainty over the contract extension could affect the production activities at the block which is currently operated by Kodeco Energy of South Korea.

?We hope the government will soon extend the contract and appoint us as the operator of the oil block,? he said, adding that if Pertamina is appointed to operate the block, the company will be able to further raise production.

According to him, oil production at the Madura block, located in the Java Sea, is about 15,000 barrels per day at present, down from about 20,000 bpd some time ago.

Pertamina currently holds 50 percent working stake in the block, while Kodeco and China?s National Offshore Oil Corp. (CNOOC) control a 25 percent stake each. Despite Pertamina?s majority interest, Kodeco currently acts as the block operator. (godang)