PHE starts Sarawak crude production

PT Pertamina Hulu Energi (PHE), the subsidiary of state owned oil and gas firm PT Pertamina, has started production at SK 305 block offshore Sarawak, a company top official said on Monday.

PHE acting president director Dwi Martono told Petromindo.Com the block started production on June 24 with initial rate of around 2,850 barrel oil per day (bopd). ?The rate is still fluctuating, not stable yet? he said.

The block is expected to produce crude at initial rate of 6,000 barrel per day (BPD).

PHE earlier said that the block would produce crude in the end of 2009 at an initial rate of 7,000 BPD. A Pertamina official said production from the block would peak at 20,000 BPD in 2011.

The block is operated under a Joint Operating Company (JOC) scheme, where Petronas has a 40 percent stake, while Pertamina and PetroVietnam has a 30 percent stake each.

Block SK305 is located in water depth of 150 meters in Balingian, offshore Sarawak , covering an area of about 16,400 sq kilometers. (godang)