Spending up yet oil exploration decline in RI<\/p>\n
JAKARTA (JP): The number of wells drilled for oil and gas
\nexploration and production in Indonesia declined substantially
\nlast year in spite of a significant increase in spending
\ncommitments by petroleum companies operating in the archipelago.<\/p>\n
The exploration and production director of the state oil
\ncompany Pertamina, Priyambodo Mulyosudirjo, told reporters
\nyesterday that the number of exploration wells drilled in 1994
\ndropped to 79, from 126 in 1993, and production wells dropped to
\n575, from 647.<\/p>\n
Last year's drilling was well short of Pertamina's target,
\nwhich was 126 new exploration wells and 634 new production wells.<\/p>\n
Priyambodo did not explain the decline.<\/p>\n
Last year, Pertamina awarded only four contracts to private
\ncompanies for oil and gas exploration and production, as compared
\nto 12 awarded in 1993, 11 in 1992 and 22 in 1992.<\/p>\n
But Priyambodo was optimistic that the number of exploration
\nand production wells drilled this year would increase to 128 and
\n586 respectively.<\/p>\n
Of the 128 exploration wells envisaged, 11 will be drilled in
\nthe eastern provinces and the other 117 will be drilled in the
\nwestern provinces, he said.<\/p>\n
Responding to questions about the small scale of oil and gas
\nexploration in the eastern region, Priyambodo said: \"It is
\nbecause the area holds high risks for investments. Contractors,
\ntherefore, prefer to invest in the western provinces.\"<\/p>\n
He noted that Pertamina and its contractors had drilled six
\nexploration wells in the eastern provinces last year, as compared
\nto six wells in 1993 and eight wells in 1992.<\/p>\n
Spending<\/p>\n
The director said spending commitments for exploration
\nactivities were estimated to have increased to US$491.01 million
\nlast year, from $462.28 million in 1993.<\/p>\n
But the executive did not mention the real spending of oil
\ncompanies on exploration activities in 1994.<\/p>\n
Oil discoveries increased to 22,185 barrels per day (bpd) last
\nyear from 18,408 bpd in 1993, while discoveries of natural gas
\nfell to 341.92 million cubic feet from 644.83 million cubic feet
\nin 1993.<\/p>\n
According to Priyambodo, Pertamina is offering more oil and
\ngas exploration and production contracts to private companies
\nthis year.<\/p>\n
\"We are now negotiating with nine companies regarding oil and
\ngas exploration in new blocs, and with eight other firms
\nregarding technical assistance in developing old oil fields,\" he
\nsaid.<\/p>\n
He expected that Pertamina would award four production-sharing
\ncontracts for exploration and production later this month. (fhp)<\/p>",
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