PHE: Production at two overseas blocks to be stopped on weak oil price
Monday, June 13 2016 - 03:52 AM WIB
PT Pertamina Hulu Energi (PHE), a subsidiary of state-owned oil and gas company PT Pertamina, said that exploration and production activities at Block SK-305 in Malaysia, and Block 10/11 in Vietnam will be stopped as they?re no longer deemed economically viable to be developed under the current weak oil price environment, Investor Daily reported on Monday.
The paper quoted PHE President Director Gunung Sardjono Hadi as saying that PHE and its partners, Petronas Carigali, and PetroVietnam Exploration Production Corporation (PVEP) have agreed to abandon the Block SK-305.
He said that preparations are now in progress for the abandonment that is expected to be realized in 2017.
The three companies also jointly developed the Block 10/11, where production and exploration activities would also be stopped due to similar reason. Gunung, however, said that PHE has also decided to entirely back down from the management of the offshore block. A similar plan has also been made by Petronas, he added. No further details about the plan were provided. (*)