Pertamina to start drilling at Mahakam block in April

By Godang Sitompul

Courtesy of Inpex

PT Pertamina Hulu Energi Mahakam, a subsidiary of PT Pertamina Hulu Energi (PHE), is set to start drilling program at the Tunuh field in Mahakam block, East Kalimantan, in April of this year.

President Director of PT PHE Mahakam, Ida Yusmiati told Petromindo.com on Friday that the company plans to drill a total of 19 wells at the Tunu field this year, utilizing existing rigs owned by drilling contractor PT Apexindo.

?We?re making preparations for the planned drilling of maximum 19 wells starting April 2017,? she said, but did not provide further details.

PHE is a subsidiary of state-owned oil and gas firm PT Pertamina. The government has decided to transfer the operatorship of the Mahakam block to Pertamina once the current contract of French firm Total EP Indonesie (TEPI) and Inpex Corp over the block expired at the end of this year.

The government has also approved the amendment of the Mahakam block contract, allowing Pertamina to start making investment this year even though TEPI?s current contract will only expire at the end of 2017 in a bid to help maintain the block?s production level.

As has been previously reported, Pertamina and TEPI plan to drill a total of 25 wells at the Mahakam block this year, of which 19 will be drilled by Pertamina with the state firm planning a total investment of US$180 million.

Gas production at Mahakam block currently stands at 1.74 bcfd, while condensate at 68,000 bpd. The Tunu field is the largest contributor to the gas production, around 700 mmscfd. Other fields contributing to the production includes Sisi Nubi, Peciko, and South Mahakam.

Editing by Reiner Simanjuntak