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Jakarta Post

Pertamina uses new technologies to cut production costs at Mahakam block

  • Norman Harsono

    The Jakarta Post

PREMIUM
Jakarta   /   Tue, September 24, 2019   /  11:58 am
The Jakarta Post Image
Environment and Forestry Minister Siti Nurbaya Abubakar gives the Proper Award to PT Pertamina Hulu Mahakam general manager John Anis in Balikpapan, East Kalimantan in December, 2018.(JP/N. Adri)

Oil and gas company Pertamina Hulu Mahakam (PHM), a subsidiary of state-owned energy company Pertamina is developing new technologies in reducing exploration and production costs to maintain its production at the Mahakam block in East Kalimantan. PHM general manager John Anis said the company, which operates the Mahakam block in East Kalimantan province, was experimenting with two technologies that, combined with other innovations, were expected to reduce next year's well-related costs by up to 40 percent for onshore exploitation and 50 percent for offshore exploitation. “By lowering operating costs, we ensure small oil wells will remain economical, so we can boost profits and [production] volume,” he told reporters in Jakarta on Monday. Exploration and production costs at the Mahakam block are generally higher than other oil and gas wells as oil and reserves in ...