PHE ONWJ to drill five development wells
Tuesday, July 18 2017 - 02:09 PM WIB
Petromindo|Khalsa
PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) has set up plans to drill five development wells at the ONWJ block in West Java in a bid to help maintain oil and gas production.
?We plan to drill five wells, which started in mid-June. The wells are LLD?-3ST, KLB-?18, KLB-?21, EB-?11, LLB-1ST in the hope to get oil production gain of 1,700 bopd and gas production of 35.2 mmscfd,? said President/General Manager of PHE ONWJ, Irwansyah.
He said that drilling of the LLD-3ST well has just been completed, and the company is currently making preparations to drill the second well, KLB-18.
The government signed on January 18 a new production sharing contract of the ONWJ block, assigning the entire contract to the block?s previous operator PHE ONWJ, an indirect subsidiary of state-owned oil and gas firm PT Pertamina. The government applied for the first time a gross split scheme in the new ONWJ block contract, meaning that the operator will no longer get reimbursement from the government for its operating and production costs.
Irwansyah said that the application of the gross split scheme has provided a challenge to the company, prompting it to reevaluate and reschedule a number of investment projects.
?Among others we reevaluate seismic acquisition plans, replacement of undersea pipelines, and production facility projects, with total reduction (of investment) more than US$50 million, and other efficiency drive worth $20 million,? he said.
Editing by Reiner Simanjuntak