Pertamina upbeat WMO block can produce 30,000 bpd
Tuesday, May 15 2012 - 02:30 AM WIB
Husen acknowledged that as of May this year the production at the WMO block was still about 15,500 bopd. But with the injection of more than four-fold increase in investment this year, he is quite optimistic the production target could be achieved. ?We still have seven months to meet the production target,? he said.
After more than 30 years operated by Kodeco Energy, on May 7, 2011, the government handed over the operation of the WMO block to Pertamina Hulu Energi (PHE), a subsidiary of Pertamina.
When PHE took over the block, its production was only 13,000 bpd, 50 percent decline from its peak production of about 26,000 bpd. The decline in production had started to occur since August 2010 as Kodeco halted further investment due to uncertainty over the extension of its contract on the oil block.
PHE?s Senior Exectuve and Vice President and General Manager for WMO, Imron Asjhari said he was also optimistic that the production target could be achieved. With routine budget of about US$540 million and operating expenditure of $235 million, Imron said the company would be able to speed up new drilling activities.
?We are optimistic the block will produce 30,000 bopd and 170 MMSCFD of gas by the end of the year,? he added,
This year, PHE would drill nine exploration and development wells as well as 15 rehabilitation wells in order to boost production.
Imron said in its long-term target, PHE expected to produce 40,000 bopd of oil and 210 MMSCFD of gas from the WMO block. In order to meet the target, the company will drill 25 exploration wells, 75 development wells, 10 rehabilitation wells, 37 maintenance wells, as well as to build 10 rigs until 2016.
Editing by Benget Besalicto Tnb.