TEMPO.CO, Jakarta - State-owned oil and gas company Pertamina will be investing US$1.5 billion in the Mahakam Block next year. The fund will be used for production activities after 2017.
"We must deposit an early investment so there will not be any major decline in production in 2018," Pertamina CEO Soetjipto said on August 23, 2016.
Dwi said that Pertamina will not be chipping-in because the company has been assigned to manage the Mahakam Block after 2017. The US$1.5 billion fund will be used for drilling 19 new wells, an operation that will be carried out in Q2 of 2017.
Dwi explained that oif Pertamina does not do anything for Blok Mahakam in 2017, a significant decline in production will occur. "If we do something, it might be able to delay the decline," Dwi said.
Dwi said that the Mahakam Block will continue to book decreasing production capacity because of the fact that it is an old block. "Now, it will depend on how to invest in adding other wells so there will be additional productions," Dwi said.
DIKO OKTARA
