Pertamina Hulu sets aside US$70 million to drill 5 wells

PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), a subsidiary of state owned oil, gas company PT Pertamina sets aside US$50-$70 million to drill five exploration wells in 2012.

General Manager and Executive Vice President of PHE ONWJ Ignatius Tenny Wibowo said the funds allocation for drilling is part of total capital expenditure (capex) and operational expenditure (opex) of US$800 million to be set aside by the company for next year.

Of the amount, US$300 million will be allocated for capital expenditure and US$500 million for operational expenditure. Portion of the capex will be used to conduct seismic activities and replacing of a number of old pumps, said Tenny.

Tenny said this year, PHE ONWJ has drilled two exploration wells, namely YY4 and KKT1. The gas reserve of the wells is being assessed. The company is also developing two new fields, APN E and F, which is scheduled to be completed next year.

PHE ONWJ expects its gas production to reach 205 MMSCFD next year, up from 140-150 MMSCFD this year, while oil production at 35,200 barrels of oil per day from 32,000 bopd this year. (*)