PHE WMO will build five more oil rigs

PT Pertamina Hulu Energi West Madura Offshore (PHE WMO) will build five more oil rigs in order to help achieve the production target of about 30,000 barrels per day (bpd) next year, Investor Daily reported on Friday.

Senior Executive Vice President and General Manager of PHE WMO, Imron Asjhari, said that the construction of the five oil rigs was expected to be completed this year so that they could be operated at the start of 2014.

Imron said he was sure the construction of the oil rigs could be sped up in line with the request of upstream authority SKK Migas so that some of them could be installed at the end of 2013, although they were now still in the tender process.

The construction of the five oil rigs KE-7, 12, 24, 52, and 53, including an undersea pipeline will cost about US$78.12 million.

PHE WMO said that there are four oil rigs built last year and all of them would be able to begin production this year. The KE-38B rig has begun production since March 13 with capacity of 5,400 bpd for oil and 5 million standard cubic feet per day (mmscfd) for gas. The second rig KE 38B-3 would start drilling works in April, while the other two rigs are under trial production.

PHE WMO is expected to produce oil of 20,400 bpd and gas of 143.1 mmscfd, this year. In order to meet the target, PHE WMO has allocated total investment of $903.15 million which comprises of $521.56 million for capital expenditure and $381.59 million for operating costs. (*)