P

ertamina EP, the upstream subsidiary of state-run energy firm PT Pertamina, has allocated US$300 million for its exploration activities in 2013 to unearth new oil and gas reserves to boost future production, an official said.

Pertamina EP’s exploration and development director, Doddy Priambodo, told reporters over the weekend that the company was aiming to drill 28 exploration wells in addition to conducting more seismic surveys in several areas this year.

“We hope to discover 265 million barrels of oil equivalent [boe] of hydrocarbon reserves consisting of 95 million barrels of oil and 983 billion cubic feet of gas,” the executive said in Jakarta.

An 817-kilometer 2-D seismic survey and a 1,827-square-kilometer 3-D seismic survey were also included in Pertamina EP’s exploration plans this year, he said.

By the end of February, Pertamina EP — which failed to meet its 2012 production target — had drilled two exploration wells, while drilling at four other wells was ongoing, according to data.

Pertamina EP had also performed a 136-kilometer 2-D seismic survey and a 226-square-kilometer 3-D seismic survey as of February this year.

In 2012, according to Doddy, Pertamina EP drilled 24 exploration wells in addition to completing a 4,055-kilometer 2-D seismic survey and a 2,382-square-kilometer 3-D seismic survey.    

“Through our explorations in 2012, we discovered new reserves of 229 million boe comprising 95 million barrels of crude oil and 777 billion cubic feet of natural gas,” he said.

In addition, he said, Pertamina EP’s oil and gas output last year reached 114 million boe, meaning the firm’s rate of return of reserves found in comparison to its production stood at 202 percent.

Currently, Pertamina EP’s working area totals 138,611 square kilometers across the country, of which 90,745 square kilometers or 65 percent remain active, while 18 percent or 24,947 square kilometers have been relinquished to the government.

The remaining 17 percent or 22,930 square kilometers of working area has yet to be recorded, the company’s data shows.  

Pertamina, which is currently the second-largest oil producer in Indonesia behind US-based giant Chevron’s subsidiary, Chevron Pacific Indonesia, produces 300,000 barrels per day (bpd) of oil, which is equal to 40 percent of the country’s daily average oil production.  

Last year, Pertamina EP produced 127,000 bpd in average daily oil output, slightly below the government’s target of 134,000 bpd.