Provident resumes exploration work at Tarakan oil block

U.S. oil company PT Provident Indonesia Energy LLC (PIE) has identified possible oil deposits in at least six locations in the Tarakan oil block off East Kalimantan, Kaltim Post reported Monday.

The general manager of the oil company, Bert Hurlbut, said in Tarakan last week that the company was still assessing if the six locations contained gas or crude oil reserves.

He said that it would be too early for the company to talk about the volume of crude oil deposits that could be pumped our from the six locations. “Without exploration works, it will be impossible to detect the actual deposits in the area,” he added.

According to him, the company will need at least Rp100 billion to drill three oil wells. The amount could be doubled the initial estimate because drilling works in offshore areas will be much more expensive than on shore.

He said that the company would decide in May whether or not to go ahead with drilling activities.

Provident obtained the contract to explore and produce oil and gas in the offshore Tarakan oil block in October 2003. The oil block covers an area of about 639 square kilometers.

Several companies including Total, Hard Son, and Amosis had been licensed to carry out exploration activities in the oil block but none of them had found significant oil and gas deposit.

Although many companies had failed, Provident is still optimistic that it will be able to find gas or crude oil in the area. (*)