PIEP targets output at 112,000 boepd this year

By Brigida Ernestina Elu Wea

PT Petamina Internasional EP (PIEP), the international upstream arm of state owned oil and gas firm PT Pertamina (Pesero), targets total oil production at 112,000 boepd this year, slightly lower than 2015 realized output of 113,000 boepd.

PIEP?s President Director Slamet Riadhy said the firm?s fields are experiencing natural decline. The firm however will try its best to achieve the target.

?The oil price is falling, but we continue producing. Our production cost is US$20 per barrel. Thus, we still survive (amid the low oil price environment),? he said.

He explained 80-83 percent of PIEP?s output is taken to Indonesia to meet Pertamina?s crude needs. The rest is delivered to PT Pertamina Integrated Supply Chain (ISCP).

When asked about PIEP?s acquisition plan, Slamet said it depends on the government. At present, te firm is concentrating on developing its existing assets.

?Our exploration blocks only exist in Malaysia. Our assets in Algeria and Iraq are already in production and there?s no exploration there,? he said.

Editing by Johannes Simbolon