TEMPO.CO, Jakarta - State-owned oil and gas company PT Pertamina has commenced drilling at Mahakam oil and gas block in East Kalimantan in a bid to maintain the old oil rig’s output.
Pertamina Upstream Director Syamsu Alam said that as of September the company has drilled six oil wells. He did not elaborate on the total oil reserves generated from the activity. He only said that the results have been on target thus far.
He said that the company is preparing to discover the seventh oil well, adding that a total of 15 wells will be needed. Pertamina plans to drill two more wells.
The company will prepare investment of around US$187 million. However, the drilling will be carried out by the operator, Total.
Pertamina will only take over Mahakam block in 2018. The drilling is being carried out during the transition period since Energy and Mineral Resources Minister Ignaisus Jonan expect the company to maintain production in the area.
Meanwhile, Total will invest around US$1 billion this year to drill six wells. The remaining budget will be used to maintain oil fields. The company predicts that next year’s gas output will reach around 1.4-1.5 trillion cubic feet, fewer than this year’s target of 1.7 trillion cubic feet.
ROBBY IRFANY
