JAKARTA (TheInsiderStories) – State energy holding company PT Pertamina will allocate at least US$3.7 billion to develop its upstream sector next year, from the total 2020 budget of $7.8 billion, a company official has said on Tuesday (11/26). It includes in the form of exploration and development of work areas managed by Pertamina.
“Starting next year, 60 percent of capital expenditure is for developing upstream assets that we manage,” Pertamina’s President Director Nicke Widyawati said at the 2019 Pertamina Energy Forum in Jakarta.
Widyawati claimed to get offers from several oil and gas companies interested in managing the Mahakam Block. Even so, she did not want to disclose information related to companies that have submitted an interest in the block. But the director said Pertamina needed partners in the block. Moreover, block production continues to decline from year to year. Production decreased even when Pertamina began managing the Mahakam Block in 2018.
Widyawati claimed the decline in natural production at the block at that time reached 57 percent. This is because of the realization of drilling in 2017 only amounted to four wells.
When taking over the management of the block, Widyawati claimed that Pertamina carried out massive development well drilling. In 2018, the state-owned oil company has drilled 76 wells and this year 122 wells.
For next year, Widyawati said the company will drill 122 development wells and two exploration wells in Tunu and Peciko Field. The company is in the process of procuring a rig for the well drilling activity.
In the Pertamina report, the Mahakam Block oil and condensate production in 2017 dropped to 46,420 barrels per day (bpd). Even though in 2015 its production could reach 69,908 bpd.
For 2018, oil and condensate production in the block will drop to only 36,168 bpd, consisting of 25,717 bpd of baseline production and 10,451 bpd of drilling and well intervention production. Even in 2023, oil production from the block’s baseline is estimated to only be 12,648 bpd. The following data is related to oil production
In addition to the upstream sector, said Widyawati, Pertamina will also pour investment funds next year for the construction of a refinery of around $1.5 billion. Especially for the refinery project that is already running in Balikpapan and preparation for the Tuban Refinery project.
Written by Lexy Nantu, Email: email@example.com