Oil production may decline by 150,000 bpd due to TGI?s pipeline accident

The decline in the oil production thanks to the stoppage of gas supplies through PT Transportasi Gas Indonesia (TGI)?s pipeline may reach 150,000 barrels per day (bpd), oil and gas upstream regulator BPMIGAS said on Thursday.

BPMIGAS spokesman Elan Biantoro said in Jakarta that the halt in the gas supply resulting from the leakage in the gas pipeline had so far caused a decline in PT Chevron Pacific Indonesia (CPI)?s Duri oil field production by 32,000 bpd.

Gas plays a vital role in Duri since the field uses waterflooding technique in oil production process.

TGI, a subsidiary of state owned gas distributor PT Perusahaan Gas Negara (PGN, has shut down since Wednesday the pipeline that channels gas from ConocoPhillip's gas field in Grissik in South Sumatra to Duri following a gas leak incident.

Aside from the Duri field, the gas supplies also support the operations of the Pertamina-Bumi Siak Pusako Joint Operating Body and regional administration-owned oil firm PT Sarana Pembangunan Riau.

Until midnight on Thursday, CPI had lost 32,000 barrels in potential oil production, Pertamina-Bumi Siak Pusako 3,700 barrels and Sarana Pembangunan Riau 200 barrels.

The potential production loss is expected to increase as CPI has planned to shut down 700 wells and Pertamina-Bumi Siak Pusako 400 wells as a result of the stoppage of gas supplies.

?Our estimate is the national production decline may reach 150,000 barrels per day as a result of the incident," Elan said, adding the gas pipeline leakage is expected to be fixed within three days. (Godang)