RI plans to boost its oil output by 160,000 bpd<\/p>\n
JAKARTA (JP): Within the next two years, Indonesia is
\nexpecting to boost its oil output by 160,000 barrels of oil per
\nday (bpd), from the development of two large offshore oil fields
\nin the Makassar Straits and West Natuna, state oil and gas
\ncompany Pertamina said on Thursday.<\/p>\n
Pertamina director for the management of production sharing
\ncontractors, Iin Arifin Takhyan, said that the new projects would
\nalso increase Indonesia's natural gas production by 490 million
\ncubic feet per day (mmcfd) and 45,000 barrels of liquefied
\npetroleum gas (LPG) per day.<\/p>\n
He described the two projects as very important for the
\nIndonesian oil and gas industry.<\/p>\n
\"The development of the West Seno oil field is Indonesia's
\nfirst deepwater development project,\" Iin told reporters at a
\npress meeting.<\/p>\n
Located in the Makassar Straits, the West Seno field would
\nproduce 60,000 bpd of oil, and is slated for production by the
\nfourth quarter of next year, Iin said.<\/p>\n
The field, which is located in water depths of 3,000 feet
\n(1,000 meters), is being developed by PT Unocal Indonesia, a
\nsubsidiary of United States energy company Unocal Corp.<\/p>\n
Unocal discovered the West Seno field in 1998 in the Makassar
\nStraits, off East Kalimantan.<\/p>\n
Thus far, it has invested some US$700 million in exploration
\ndrilling and is currently tendering for a floating oil rig and
\nother facilities.<\/p>\n
Unocal has a 50 percent stake in contractor's share, with the
\nother half belonging to Mobil Oil Indonesia, a subsidiary of U.S.
\nenergy company Mobil Oil Corp..<\/p>\n
But a Unocal official said that Unocal planned to take over
\nMobil Oil's interest, after the latter decided to release its
\nworking interest in the field.<\/p>\n
He said the plan was subject to Pertamina's approval.<\/p>\n
Next to West Seno, Unocal will develop the Merah Besar field
\nof the Kutai basin located in the deep water of the Makassar
\nStraits.<\/p>\n
\"The West Seno field will also produce some 150 mmcfd,\" Iin
\ncontinued.<\/p>\n
He said the gas would be transported to the Bontang industrial
\nestate in East Kalimantan.<\/p>\n
At Bontang, fertilizer companies like state owned PT Pupuk
\nKaltim and other plants can utilize the gas.<\/p>\n
\"The second project is the Belanak oil field, which has a
\nproduction capacity of 100,000 bpd, and is estimated to start
\nproduction by the year 2003,\" Iin went on.<\/p>\n
\"The field's Floating Production Storage Off-loading (FPSO)
\nfacility will be the largest in the world,\" he said.<\/p>\n
He said the off-loading facility would be used to off-load LPG
\nonto tankers. For the Belanak field, he expected LPG production
\nto reach 45,000 barrels per day.<\/p>\n
Iin said that the field would also produce gas amounting to
\n340 mmcfd, which has been earmarked for a gas sales project to
\nMalaysia.<\/p>\n
The Belanak field, located in West Natuna, is being developed
\nby Conoco Indonesia Inc., a subsidiary of American energy firm
\nConoco Inc.<\/p>\n
The company is hoping to finalize a gas sales contract with
\nMalaysia's state oil and gas company Petronas by April this year.<\/p>\n
The gas will be delivered at a peak rate of 250 mmcfd to
\nMalaysia via an underwater pipeline.<\/p>\n
Iin said that Conoco had spent $600 million for the
\ndevelopment of the gas field.<\/p>\n
The development of the two projects is coming at a time, when
\nthe local fuel consumption is rapidly depleting the country's oil
\nreserves.<\/p>\n
Analysts have warned that Indonesia might become a net oil
\nimporter by the year 2020.<\/p>\n
At present the country is importing some of its fuel needs,
\nlargely because of its limited oil processing capacity.<\/p>\n
Government plans to tender 21 new blocks within the first
\nquarter of this year.<\/p>\n
Iin estimated that the government would begin the tender
\nprocess next month.(bkm)<\/p>",
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