PT Pertamina Hulu Mahakam (PHM), a unit of PT Pertamina Hulu Indonesia (PHI), announced the start of work construction of three offshore plant for the Sisi Nubi Field and South Mahakam with an investment of US$105 million, said the company on July 29 - Photo by the Company

JAKARTA (TheInsiderStories) – Oil producer, PT Pertamina Hulu Mahakam (PHM), a unit of PT Pertamina Hulu Indonesia (PHI), start the construction of three offshore plant for the Sisi Nubi Field and South Mahakam in East Kalimantan, with an investment of US$105 million, said the company on July 29. The new site will support 20 percent of the Mahakam working areas production in 2024.

“During peak production, contributions from these three plant its expected to reach 120 MMSCFD (million standard metric cubics feet per day),” said CEO of PHM, Danar Dodjoadhi in an official statement.

While, the PHI’ CEO, Chalid Said Salim, said the contract lasted 18 months since the deal was signed. The producer is targeting oil and gas lifting production of 181,510 barrels of oil equivalent per day (BOEPD) in 2020 or higher than from previous year at 175,674 BOEPD.

In details, oil lifting 83,100 BOPD and gas sales 570.11 million cubic feet per day (MMSCFD). In 2019, Pertamina Hulu produced 76,971 BOPD of oil and gas 572 MMSFD.

The Offshore North West Java (ONWJ) is still the largest contributor to the company’ oil lifting, which is 25,788 BOPD. Then, the Offshore Southeast Sumatra (OSES) with 25,331 BOPD. Both liftings were part of the producer, which has a participating interest of 90 percent. Other contributors were CPP Offshore 4,763 BOPD, Sulawesi Tomori 3,729 BOPD, Jambi Merang 3,599 BOPD and West Madura Offshore with 3,116 BOPD.

For gas lifting, the biggest contributor was Sulawesi Tomori of 146.8 MMSCFD, which accounts for 50 percent of the block. Then, WMO recorded 94.5 MMSCFD, ONWJ with 73 MMSCFD, and Jambi Merang of 68.3 MMSCFD.

Its parent, PT Pertamina is targeting oil and gas production of 923,000 BOEPD in this year. The target is slightly up from this 2019 around 922,000 BOEPD. The state energy holding company will allocate at least $3.7 billion to develop its upstream sector, from the total 2020 budget of $7.8 billion. It includes in the form of exploration and development of work areas managed by the energy firm.

The government aimed to reached the oil production target of 1 million barrels in 2031.

The three sites that will be built are Jumelai which will be installed in South Field Mahakam, as well as North Sisi and North Nubi for the Sisi Nubi Field is expected to be completed in the fourth quarter of 2021. Gas produced from this project will be distributed to the PT Pertamina Refinery Unit 5 refinery in Balikpapan.

Written by Editorial Staff, Email: theinsiderstories@gmail.com