Pertamina promotes marginal field development
Wednesday, March 22 2000 - 04:00 AM WIB
State oil and gas company Pertamina is providing incentives for production sharing contractors to develop oil and gas marginal fields cross the country.
Head of Pertamina's Production Sharing Contractors Management Body (BPPKA) Gatot K. Wiryoyudo, who is also director of exploration and production, said on Tuesday Pertamina allowed contractors interested in developing marginal fields to obtain loans with the interest rate of 0.6 percent above London Interbank Offered Rate (LIBOR).
The contractors are also given 40 percent of the output, as against 15 percent under the common production sharing contract system.
Gatot said of 400 oil and gas fields in the country, 90 percent were considered marginal with an oil reserve of between 1 and 35 million barrels.
He was quoted by Neraca as saying that production cost for the development of marginal fields was at US$3 per barrel. Thus, developing the fields amid current high oil prices was still very profitable.
He said YPF-Maxus, one of Pertamina's PSCs, had successfully increased output at three of its marginal fields. (*)