PHE begins installation of production platforms in WMO block

President Director of state-owned oil and gas firm PT Pertamina, Dwi Soetjipto on Wednesday inaugurated the installation of production platform for the PHE-24 field development, which is part of the first stage integrated field project (EPCI-1 project)) in the West Madura Offshore (WMO) block, East Java, operated by indirect subsidiary PT Pertamina Hulu Energy West Madura Offshore (PHE WMO).

Pertamina said in a statement that the development of the EPCI-1 project is currently at the stage of installation of PHE-12 and PHE-24 offshore platforms.

The integrated production facilities will be equipped with central processing platform 2 (CPP2). The CPP2 facility will begin its voyage from the fabrication plant in Cilegon, Banten, in the middle of October. The three facilities are expected to be installed offshore by the end of November at the latest.

?The development of the integrated field is part of Pertamina?s efforts to increase contribution by up to 40 percent to national oil production in 2019. Currently Pertamina contributes around 23 percent of the national total oil production of 830,000 bpd,? Dwi said in the statement.

President Director of PT PHE, Gunung Sardjono Hadi said in the statement that to support the production facilities, a total of 19.5 km undersea pipeline is also being developed which will channel oil and gas output from the integrated PHE-12 and PHE-24 fields.

He said that the entire EPCI-1 project is targeted to be completed in February of 2017.

?In line with the target set by SKK Migas, the integrated field by February 2017 must already start flowing oil at a rate of around 1,000 bopd, and which will peak at 2900 bopd in May of 2017. Gas production is projected to start in June 2017 at rate of 10 mmscfd, and to peak at 14.1 mmscfd in July 2017,? Gunung explained, referring to the upstream oil and gas authority.

He added that, the company will later proceed with the EPCI-2 project, comprising of the construction PHE-48 and PHE-7 offshore production facilities, expected to start in early 2018.

Meanwhile, President/General Manager of PHE WMO, Sri Budiyani said that through the EPCI-1 project, PHE WMO hopes to see additional output of 5,000-7,000 barrels gradually in every three months over the next five years. As such, the natural declining rate at WMO Block, which averaged 50-60 percent per year over the past three years, can be reduced.

Editing by Reiner Simanjuntak