JAKARTA (TheInsiderStories) – Indonesia’ energy producer PT Pertamina budgeted investment funds of US$2.73 billion in 2019 to develop several projects across the archipelago, said one official last week. The amount smaller than 2018 which amounted to $2.9 billion.
Dharmawan Samsu, upstream director of Pertamina, said the funds will distributed to work on several project in Kalimantan such as Mahakam, Sanga-Sanga, Simenggaris, Nunukan, East Kalimantan and Attaka block, as well as asset five areas operated by PT Pertamina EP.
In details, the investment of PT Pertamina EP Cepu amounted to $310 million for the Tiung Biru Jambaran project, PT Pertamina Hulu Energi for $448 million to drill 45 wells and 13 exploration wells, and the Mahakam Block is $1.8 billion for drilling 108 wells. While for upstream oil and gas invested $2.3 billion, and the remaining $153 million for geothermal energy.
In 2018, Pertamina was produced 768 thousand barrels of oil equivalent per day (BOEPD), or 42 percent higher than 2017 realization at 542,000 BOEPD during 2018. He elaborated, of the total productions, oil output recorded 291,000 BOPD, or up 22 percent compared to the 201 of 238,000 BOPD.
While, gas production recorded at 2,763 million cubic feet per day (MMSCFD), or rise 57 percent from 2017 which was 1,760 MMSCFD. He said, this increase caused by a combination of the success efforts to increase production and stifle the rate of decline in production from existing assets.
In addition, he continued, several termination working areas have been entered into Pertamina’s production system, such as Mahakam block, Sanga-Sanga block, East Kalimantan block, and Offshore South East Sumatra block.
Furthermore, Samsu stated, the oil and gas block in Algeria, Iraq, Malay and other countries, which are managed through PT Pertamina International EP, has contributed 102,000 BOPD and 299 MMSCFD last year.
Beside oil and gas, Pertamina’s geothermal performance in 2018 also increased significantly, he added, reaching 4,145 Gigawatt per hour (GWh) or an increase of 6 percent compared to 2017 which was recorded at 3,900 GWh.
He said, in 2019, Pertamina will maintain domestic oil and gas production of 758 MBOEPD, with details of 302,000 BOPD oil and 2,643 MMSCFD gas.
In addition, Pertamina is also directed at minimizing production losses by maintaining the integrity of production facilities, increasing operational cost effectiveness, and developing technological innovations that are in line with field needs.
In order to support to renew reserves through a new exploration pathway, through a definite commitment of $216 million from the Jambi Merang block, the producer conducted several joint-studies in five focus areas for exploration of new ventures.
“We welcome the access to new-venture exploration at Maratua block and the participation in the development of the Merakes at East Sepinggan. Our Exploration Team continues to work to gain promising new access in Eastern Indonesia,” he continued.
Pertamina also intends to increase upstream assets abroad with production target of 112,000 BOPD and 300 MMSCFD in 2019, where the increase in investment to $174 million from a year ago $110 million.
Expected, the increase in production target could rising the crude oil lifting to be taken to the Pertamina’ refinery in Indonesia, as many as 8 million barrels from the previous year of 6.5 million barrels. While, the state-owned company targets in geothermal production of 4,551 GWh.
According to Samsu, the focus of geothermal activities in 2019 is the operation of Lumut Balai in the first quarter of 2019, ensuring the Hulu Lais Unit 1 project (55 MW), accelerating the exploration in the Seulawah block with (55 MW), and optimizing existing fields with binary cycle technology.
In the current year, Pertamina also plans to settle Rokan Block transition operation to boost the production. Pertamina also plans to replace the distribution pipe and drill wells with PT Chevron Pacific Indonesia to maintain the risk of leakage.
In addition, Pertamina has again formed a new subsidiary to specifically manage the Rokan Block, the largest national oil producing block, by PT Pertamina Hulu Rokan, which will later play a role in transitioning the management transfer from Chevron to Pertamina.
Written by Daniel Deha, Email: email@example.com