PHE WMO?s oil output continues to decline

Petromindo|Khalsa

PT Pertamina Hulu Energi West Madura Offshore (PHE WMO), which operates the WMO block, offshore East Java, saw oil production from the block this month further declined to 7,500 bopd, the lowest so far this year amid natural declining production rate which has reached 50 percent per year, kontan.co.id reported Tuesday.

In January-February of this year, output stood at 8,000 bopd, and then declined to 7,800 bopd in September. Production is expected to further decline going forward.

?We target (oil) production next year of around 6,000 bpd, but has yet to submit the (production) plan to SKK Migas (upstream oil and gas authority,? said Kuncoro Kukuh, General Manager of PHE WMO. In comparison, this year?s production target is 7,611 bopd.

To help arrest production decline, PHE WMO has started implementing various measures including apply enhanced oil recovery (EOR) program at wells in the southern part of the block, Kukuh said.

The company also plans to carry out new exploration activities in bid to seek for new reserves.

Meanwhile, WMO?s gas production remains solid at 120 mmscfd as per October, exceeding this year?s target of 112.5 mmscfd.

?Gas production is above target because our reserves contain more gas. In fact, when we produce oil, the gas always come out,? he said.

He added that the company?s gas business is prospective especially demand from PT Petrokimia Gresik has recently increased to 35 mmscfd from previously 5-10 mmscfd. Its largest consumer remains PT Pembangkitan Jawa Bali. (*)