Pertamina starts drilling in Mahakam block

By Bernard Loebs

Petromindo|Khalsa

State-owned oil and gas firm PT Pertamina started on Monday its first drilling program at Mahakam block in East Kalimantan in a bid to help maintain the block?s production as the contract of the current operator is set to expire end of this year.

Pertamina Upstream Director Syamsu Alam said that the company started drilling one well, out of its target to drill 15 wells this year, using Apexindo rig. He said that the drilling program is expected to be completed in 15 days.

Pertamina through subsidiary PT Pertamina Hulu Mahakam will take over the Mahakam block from current investors PT Total EP Indonesie (TEPI) and Inpex Corp early next year once the current contract expires at the end of this year. TEPI, the current operator of the block, has agreed to allow Pertamina to start making investment in the block this year to help maintain output level. Pertamina initially planned to drill 19 wells this year, and TEPI six wells. The latter company had completed drilling the six wells in March.

Syamsu said in May that the company planned to drill 14 wells, starting in June, with total cost of US$160 million, in a bid to help maintain production level in Mahakam block, which he said currently stands at around 1,400 mmscfd of gas.

Editing by Reiner Simanjuntak