Pertamina eyes 4 expiring blocks
Wednesday, May 11 2016 - 12:27 PM WIB
State owned oil and gas firm PT Pertamina is seeking to control four oil and gas blocks whose contracts are set to expire in 2018. The four blocks are Ogan Komering PSC in South Sumatra province, Tuban PSC in East Java province, East Kalimantan PSC and Sanga-Sanga PSC, both in East Kalimantan province.
Governmental Regulation No. 35/2004 allows Pertamina to file a request for expiring blocks with the ministry of energy and mineral resources earlier than other PSC holders.
Ogan Komering PSC is now operated by Pertamina Hulu Energi (PHE) and Talisman under Joint Operating Body (JOB) scheme, while Tuban PSC is operated by PHE together with Petrochina, also under the JOB scheme. Both contracts expire in 2018. Pertamina filed requests for contract extension on the blocks with the ministry in early 2016, Pertamina?s spokesperson Wianda Pusponegoro said.
Oil and gas production of Ogan Komering now reaches 2,262 bopd and 7.74 mmscfd. At the end of contract, the block?s recoverable reserves are estimated at 3.7 million barrels of oil and condensate and 52 bcf of gas. Production of Tuban now stands at 4,261 bopd and 4.69 mmscfd with recoverable reserve at expiry date estimated at 12 million barrels of oil and condensate and 112 bcf of gas.
With regards East Kalimantan PSC, the current operator, Chevron Indonesia Company, has announced it would not ask for extension of the contract which expires in 2018. Pertamina is mulling operating the block after 2018 and has filed a request with the ministry for a permit to carry out technical and commercial study on the block, Wianda said, adding the block now produces around 18,000 bopd.
Meanwhile, Sanga-Sanga block, operated by Vico, a subsidiary of BP Plc, now produces 39,000 bopd. Pertamina plans to submit a proposal to the ministry on its intention to take over the block in June of this year.
Wianda said Pertamina is interested in both East Kalimantan PSC and Sanga-Sanga PSC because both are located in close distance to Mahakam block which will be operated by Pertamina starting in 2018. Petamina would like to integrate the operation of the three blocks so that the three blocks can share facilities and thus create efficiency. The three blocks supply gas the Bontang LNG plant which is now owned by Pertamina.
?One of the reasons that we want to acquire Sanga-Sanga and East Kalimantan is the possibility of integrating them with Mahakam block. Furthermore, the gas reserves are still good. This is important because Indonesia is projected to suffer a gas deficit of 4 bBtu in 2020,? she said.
Editing by Johannes Simbolon