PetroChina not allowed to produce crude from new well

Chinese oil firm PetroChina said on Tuesday some 8,000 barrels per day of potential oil production from its East Java oil fields were put on hold after Ministry of Environment ordered the company not to carry out its planned activities.

PetroChina?s Indonesian unit spokesperson Budi Setiadi the ministry had not allowed the company to produce oil from Sukowati-5 development well which had been ready to produce 2,000-3,000 BOPD. The company was also not allowed to carry out drilling of Sukowati 6, 7 and 8 development wells. ?The three wells could have produced 6,000 barrels together,? said Budi.

He said that Ministry of Environment ordered the company to make new environmental impact assessment.

PetroChina?s trouble in getting permit from Ministry of environment began when a gas blowout occurred during Sukawati-5 well drilling last July, causing fear about safety of villagers who lived near drilling sites. The blow out was killed a few days later and drilling was resumed.

Budi appealed for the Ministry of Energy and Mineral Resources and BPMIGAS to help the company resolving the matter.

PetroChina, together with state oil and gas company Pertamina operate Tuban JOB, where Sukowati fields are located. Budi said currently Sukowati and nearby Mudi field produce 18,000 barrels of oil per day. (godang/alex)