PHE ONWJ to revise 2017 WP&B

By Febry Silaban

Petromindo|Khalsa

PT Pertamina Hulu Energy Offshore North West Java (PHE ONWJ), an indirect subsidiary of state-owned oil and gas firm PT Pertamina (Persero), which operates the ONWJ block in West Java, is currently re-evaluating its 2017 work program and budget (WP&B) following changes in the block?s contract from cost recovery production sharing contract (PSC) to gross split PSC, according to a top official of the firm.

"We are still doing re-evaluation of the 2017 WP&B. All the non-routine work plans need to be reevaluated. It is associated with changes in the form of our PSC from previous cost recovery (contract) into gross split scheme," Executive Vice President /General Manager of PHE ONWJ Irwansyah told Petromindo.com on Wednesday.

He added that one of the activities being re-evaluated is the number of wells to be drilled this year. Last year, Irwansyah said, there will be five development wells and one exploration well which are planned to be drilled in 2017. He said the wells will be drilled by using Independent Leg Jack-up Drilling Unit.

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. The government applied for the first time the newly-introduced 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.

Editing by Reiner Simanjuntak