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BPMigas relies on 11 new projects

Upstream oil and gas regulator, BPMigas, announced it would be relying on 11 new oil and gas fields in order to boost next year’s production, although it has set a lower target than this year’s

Rabby Pramudatama (The Jakarta Post)
Jakarta
Mon, September 17, 2012 Published on Sep. 17, 2012 Published on 2012-09-17T10:14:46+07:00

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pstream oil and gas regulator, BPMigas, announced it would be relying on 11 new oil and gas fields in order to boost next year’s production, although it has set a lower target than this year’s.

BPMigas’ newly appointed planning deputy, Widhyawan Prawiraatmadja, said on Friday that the agency expected to add around 44,900 barrels of oil per day (bpd) in 2013.

“The amount of additional oil production will primarily come from the 11 new fields but we will also ask Pertamina EP to apply enhanced oil recovery [EOR] and optimize the production at the Cepu block,” he told reporters during a media gathering at BPMigas’ office on Friday.

He added, however, that BPMigas also expected a production decline of 3 to 4 percent in 2013.

According to BPMigas’ data, the 11 new oil fields include the Karendan field, owned by Salamander Energy Bangkanai Limited; South Mahakam and South Mahakam phase two fields, owned by Total E&P Indonesie; Lentang Tengah field, owned by ConocoPhillips; and Gundih and Pondok Makmur fields, owned by Pertamina EP.

The remaining fields are Anoa field, owned by Premier Oil; Duri field owned by North Duri Development (NDD) Area 13 Chevron Pacific Indonesia; GG and UL fields owned by Pertamina Hulu Energy Offshore North West Java; and Jambu Aye field, owned by ENI Krueng Mane Limited.

For the EOR, Widhyawan said BPMigas would ask Pertamina to apply the enhanced recovery at Rantau and Talang Jimar fields located in North Sumatra.

“We also expect the Cepu block, which is owned by Mobil Cepu Ltd., to improve its early production facility [EPF] capacity from its current capacity of 22,000 bpd to 27,000 bpd,” he said.

Mobil Cepu Ltd. (MCL) and Ampolex (Cepu) Pte. Ltd., both subsidiaries belonging to ExxonMobil that operates the block, hold a 45 percent stake in Cepu, while PT Pertamina EP Cepu also holds 45 percent. Contracting company KKS Cepu, which was established by MCL, Ampolex, Pertamina EP Cepu and four local government companies, holds the remaining 10 percent.

The Cepu block, which was discovered in 2001, is considered crucial for meeting the government’s oil production target of 1.01 million bpd in 2014.

As of Aug. 31 this year, the country’s total oil production reached 851,000 bpd, still way below this year’s raised oil target in the 2012 state budget of 930,000 bpd.

To meet the 2013 target, the government set an oil production target of 900,000 bpd, lower than this year’s target. But, following recent deliberations with the House of Representatives the oil production target was subsequently set at a range between 890,000 bpd to 930,000 bpd.

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