PHE-ONWJ to increase oil production by 16% in 2011

Pertamina Hulu Energi (PHE)-ONWJ sets oil production target at 31,000 BOPD in 2011, a 16 percent increase compared to 26,800 BOPD targeted in 2010. The additional production of 4,200 BOPD will be reached through the acceleration of the implementation of the production activities, development of fields and integral maintenance of facilities, the Company said.

PHE ONWJ is a unit of PHE, which, in turns is a wholly owned subsidiary of state oil, gas company PT Pertamina (Persero).

Apart from developing APN E/F field, PHE-ONWJ will also conduct drilling activities in 10 infill wells and development wells, 15 work over wells, replacement of pipelines and upgrade compressor Bravo control system. Besides, the company will also drill two exploration wells. In line with the activities, the company will also conduct 3D seismic survey covering 750 km2 in West Transition Zone.

PHE-ONWJ records average actual production at 26,800 BOPD and 215 BBTUD (equivalent to 205 MMSCFD) per today, Monday, 08/30/2010. The realized oil production is higher than the target set at 2010 working plan that set the 2010 Revised Working plan at 26,000 BOPD. Meanwhile, the realized gas production is in accordance with the work plan.

Since its initial gas production in 1993, up to now, the whole gas production in Offshore North West Java (ONWJ) Block is supplied to meet domestic gas need, notably PT PLN, PT PGN, PT Pupuk Kujang and in the near future Balongan refinery. ONWJ?s cumulative production until the end of 2009 is recoded at 1.2 billion barrels of oil and 3 TCF of gas.

Recently, PHE-ONWJ has once again reinforced its commitment to meeting domestic gas supply need. Following its amendment to Gas Sales and Purchase Agreement (GSPA) with PT PGN in last May, PHE-ONWJ will soon sign new GSPA on gas supply to Balongan Refinery, Indramayu, West Java. A discussion is also underway on the sale of additional gas to PT Pupuk Kujang, West Java. Under the plan, gas supply to fertilizer maker PT Pupuk Kujang will come from gas production Tranche-4 which has entered a development phase. Plan of Development (PoD) and AFE Tranche-4 has been approved by Upstream Oil and Gas Regulator BPMIGAS.

ONWJ Block is owned 46 percent by PHE ONWJ Ltd (as operator), 36.7205 percent by CNOOC ONWJ Ltd, 7,25 percent by INPEX Java Ltd., 5,0295 percent by Talisman Resources (N.W. Java) Ltd. and 5 percent by Salamander Energy (java) Ltd. (godang)