TEPI to cut number of rigs in Mahakam drastically
Saturday, June 27 2015 - 01:18 AM WIB
Total EP Indonesie (TEPI), the operator of the Mahakam block in East Kalimantan, said it would drastically cut the number of rigs operating in the block to only three from now thorough 2016
TEPI now operates 10 drilling rigs, including six from IDX-listed PT Apexindo Pratama Duta Tbk.
Arividya Noviyanto, Vice President for Human Resources, Communications, and General Services at Total said earlier that his company has cut drilling activities in a dozen of wells.
"To keep production in 2015, Total still operates 3.3 swamp barge rigs and 4.1 offshore rigs to drill 107 development wells (77 wells in swamp and 30 wells in offshore)," he said.
Whereas, in 2016, the firm will only operate 3 swamp barge rigs and 0.9 offshore rigs to carry out drilling on 71 development wells (67 wells in swamp, 4 wells in offshore), according to Arividya.
Apexindo confirmed that contracts on three rigs of the firm will be mature in 2015 and contracts two other rigs will end in 2016.
Apexindo has eight land rigs and six offshore rigs consisting of four submersible swamp barge rig in Mahakam, that is Maera, Raisis, Raissa and Yani; and two jack-up that is Raniworo and Soehanah.
"Rig Maera which expires this September has got an extension for another year until September 2016. With regards Rig Yani which expires in this October, discussion is in progress on the possibility to get a renewal for another year," said Manager of Corporate Finance & Investor Relations at Apexindo, Paolo Kartadjoemena to Petromindo.com.
Meanwhile, Rig Soehannah which ended in August 2015 most likely will not be operated again in the Mahakam block. "Rig Soehannah is currently bidding for other locations," Paolo said.
Then, Raisis and Raniworo rigs will expire in January 2016 and May 2016, respectively.
In addition, there is still Raissa rig which experienced an incident of shallow gas release in 2013, making it unable to operate. The rig is still located in Handil, East Kalimantan, with a stand-by status.
The cooperation between Apexindo and TEPI began in 1992 with the swamp-barge Maera starting its first drilling operations in Mahakam Delta.
Apexindo remains optimistic that the new operator of the block, PT Pertamina, will continue using its service in the block.
"There isn?t yet any discussion with Pertamina, but they are our good client. We hope to cooperate with Pertamina in Mahakam," Paolo said.
Contract portfolio of Jack Up Rig
| Rig | Client | Period | Location | Contract Value |
| Raniworo | Total E&P Indonesie | Jan 2013 ? Jan 2016 | Mahakam, East Kalimantan | US$132.2 million |
| Soehanah | Jan 2013 ? Aug 2015 | US$148.5 million | ||
| Source: Apexindo | ||||
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Portfolio of Submersible Swamp Barge Rig Contract
| Rig | Client | Period | Location | Contract Value |
| Maera | Total E&P Indonesie | Jan 2013 ? Jan 2016 | Mahakam, East Kalimantan | US$132.2 million |
| Raisis | Jan 2013 ? Aug 2015 | US$148.5 million | ||
| Yani | Jan 2013 ? Jan 2016 | US$132.2 million | ||
| Raissa | Jan 2013 ? Aug 2015 | US$148.5 million | ||
| Source: Apexindo | ||||
Editing by Johannes Simbolon