Pertamina EP scales back drilling program

PT Pertamina EP, a subsidiary of state-owned oil and gas firm PT Pertamina, has proposed to drastically cut down the number of oil wells to be drilled this year as part of a cost-saving measure program amid the current drop in oil price, Bisnis Indonesia reported on Wednesday.

The paper quoted Deputy for Operation Control at upstream oil and gas regulator SKK Migas, Muliawan as saying that the company has proposed to reduce the number of wells to be drilled this year by 100 as part of a revised work and budget plan. But he said that the authority has yet to approve the proposal.

Pertamina EP has initially planned to drill a total of 126 wells this year, the paper said.

Muliawan said that the planned scale back of the drilling program would not reduce Pertamina EP?s oil production this year as it would only affect exploration wells.

However, he acknowledged that future production may be undermined.

Pertamina President Director Dwi Soetjipto said that the scale back of drilling program was made as part of cost-saving measure amid the current drop in oil price.(*)