PHE eyeing contract extension for Java oil, gas block

PT Pertamina Hulu Energi (PHE), an upstream unit of state oil, gas company PT Pertamina (Persero) has stated its intention to apply for PSC extension for its Offshore Northwest Java (ONWJ) oil, gas block, which current contract will expire in January 2017.

?PHE is preparing to submit formal request (to the government) to extend the PSC extension for ONWJ,? PHE Spokesperson Ali Mundakir told Petromindo.Com last week.

Ali hinted that PHE would want another 20 years contract for the block.

PHE acquired 46 percent stake in the block in 2009 from previous operator BP Plc.

The block is currently producing 27,000 barrels per day of oil and 215 BBTUD of gas. The block had been cumulatively producing 1.2 billion barrels of oil and 3 TCF of gas since 70s with peak oil production of 175,000 BPD achieved in 1984.

PHE ONWJ General Manager Tenny Wibowo told reporters in August 2010 that the block is believed to still contain significant upside potential. PHE ONWJ also plans to drill two exploration wells in 2011. (bernard)