PTTEP plans drilling campaign in RI despite portfolio reduction plan

By Alexander Ginting

Thai oil and gas firm PTTEP and partners plan to drill two exploration wells in Semai II PSC offshore West Papua this year despite the company?s plan to reduce Indonesian exploration portfolio.

PTTEP has a 28.33 percent interest in the block, equal with operator US oil firm Murphy Oil and Japan?s Inpex. The remaining 15 percent is held by Pertamina Hulu Energi.

PTTEP in its recent report revealed that the drilling campaign for the shallow water prospects will commence in the first quarter of 2014.

In 2011 the partnership drilled the first well in the block called Lengkuas-1, but failed to make commercial discovery.

PTTEP also reported that it was continuing effort to divest its 100 percent interest in Malunda offshore PSC in Makassar Straits.

PTTEP is also planning to divest its 34 percent percent operating interest in South Mandar block, also located in Makassar Straits, and is currently in talks with its partner in the block French giant Total SA to transfer operatorship and to carry cost. Total has 33 percent interest in the block. Canadian firm Talisman Energy also has 33 percent interest in the block.

PTTEP, along with partners Total and Talisman is in the process of relinquishing Sadang and South Sageri deepwater blocks and is currently waiting government approval. Both blocks were operated by Talisman.

Editing by Reiner Simanjuntak