YPF-Maxus enjoys big output in SE Sumatra<\/p>\n
JAKARTA (JP): Oil and gas company YPF-Maxus achieved on
\nTuesday a landmark in its operations in the country, reaching a
\ncumulative output of one billion barrels of crude oil at its
\noffshore block in Southeast Sumatra.<\/p>\n
The general manager of the company, Curtis W. Murray, said the
\ncompany was delighted with the achievement and would continue its
\ncommitment to Indonesia despite the economic and political
\ncrises.<\/p>\n
\"We now look forward to the challenges which lie ahead this
\nyear and beyond. Our current commitment to Indonesia is to
\ncontinue searching for and developing natural resources, not only
\nin this concession block, but we will also continue to look for
\ninvestment opportunities in new blocks,\" Murray said in a speech
\nread out by the company's vice president for finance planning and
\ncontrol, Robert Dean Galloway, during the ceremony to mark the
\nproduction of the one billionth barrel of oil.<\/p>\n
The event was celebrated in a modest ceremony at the company's
\nbase of operations on Pabelokan Island, about 70 kilometers north
\nof Jakarta.<\/p>\n
Minister of Mines and Energy Kuntoro Mangkusubroto and the
\npresident of state oil and gas company Pertamina, Martiono
\nHadianto, were scheduled to attend the ceremony but were forced
\nto cancel because of bad weather.<\/p>\n
Murray said the Southeast Sumatra block was currently the
\ncountry's largest offshore producer of crude oil with an output
\nof approximately 150,000 barrels per day (bpd).<\/p>\n
Data from Pertamina shows the block is also one of the most
\nefficient oil blocks with an average oil production cost of
\nUS$3.43 per barrel.<\/p>\n
The production sharing contract (PSC) for the 11,044 kilometer
\nblock was signed in 1968 and extended in Sept. 1998 for another
\n20 years.<\/p>\n
The block was originally owned by the Independent Indonesian
\nAmerican Petroleum Company, but was acquired by the American-
\nbased Maxus in 1987. Maxus was bought by YPF, Argentina's former
\nstate oil and gas company, in 1995. The acquisition led to the
\ntransfer of all of Maxus' properties in Indonesia to YPF.<\/p>\n
Today, the block is 45.67 percent owned by YPF-Maxus Southeast
\nSumatra.<\/p>\n
The remaining shares are owned by Inpex Sumatra Ltd., which
\nholds 13.06 percent of the block; YPF Sumatera Tenggara B.V. with
\n10 percent; Cieco Sumatra Inc. with 8.9 percent; Daminex Sumatra
\nOil Gmbh, which holds 5 percent; Repsol Exploration Sunda B.V.
\nwith 5 percent; Repsol (Sumatra) Exp. & Prod., which owns 4.8
\npercent; Warrior International Corp. with 3.7 percent; Paladin UK
\n(South East Sumatra) Ltd. with 2 percent; and Alberta Ltd., which
\nholds 1.6 percent.<\/p>\n
Production began in 1971 at the block's Cinta oil field, which
\ncurrently produces 12,000 bpd.<\/p>\n
The company discovered the Intan field in 1987, which today
\nhas an output of 13,000 bpd.<\/p>\n
In 1988, it discovered its largest field, Widuri, which
\ncurrently produces 95,000 bpd.<\/p>\n
The company's district manager for the south, John Sitinjak,
\nsaid the block reached its peak production of 250,000 bpd in
\n1991.<\/p>\n
He said the block had proven oil reserves of 400 million
\nbarrels and proven gas reserves of 300 billion cubic feet.<\/p>\n
Murray said the company was marketing the block's gas and he
\nhoped it would be able to transport gas from the block to
\ncustomers in Jakarta and West Java starting in late 2001.<\/p>\n
Aside from the Southeast Sumatra block, YPF-Maxus also
\noperates and owns 45 percent of the South Sokang PSC block east
\nof Natuna Island in the South China Sea.<\/p>\n
It also has a 16.7 percent stake in the Blora PSC production
\nblock in Central Java, which is operated by Coparex, and a 25
\npercent stake in the West Madura PSC block operated by South
\nKorea's Kodeco. It also holds a 50 percent stake in the Poleng
\ntechnical assistance contract offshore block in East Java. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ypf-maxus-enjoys-big-output-in-se-sumatra-1447893297",
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"sponsor": "Okusi Associates",
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