32 new oil exploration sites offered by government
32 new oil exploration sites offered by government
JAKARTA (JP): State-owned oil company Pertamina yesterday
announced it will be offering 29 oil and gas exploration areas
under production-sharing schemes, and another three areas under a
technical-assistance arrangement, to both domestic and foreign
firms.
Pertamina's director of production and exploration, Priyambodo
Mulyosudirjo, told a press conference here that 24 of the areas
offered under the production-sharing scheme would be awarded
through direct negotiations and the other five through
competitive biddings.
"We expect to conclude 20 oil exploration contracts this year,
about the same number as last year," Priyambodo said.
He said the contracts expected to be signed this year would
probably consist of 10 technical-assistance agreements, four
production-sharing contracts, four extension contracts and one
each for enhanced oil recovery and for joint operation.
He said exploration activities have declined steadily in the
past two years, as reflected in the decrease in the number of
exploration wells drilled, from 126 in 1993 to 79 in 1994, and
down to 75 in 1995.
"But we expect 164 exploration wells to be drilled this year,"
he added.
He said the number of production wells developed has also
decreased steadily from 647 in 1993 to 575 in 1994 and to 534 in
1995.
He added, though, that 794 production wells were expected to
be developed this year.
Priyambodo said the 24 areas which would be awarded through
direct negotiations were located in West Java, Irian Jaya,
Kalimantan, Sulawesi, Natuna near Singapore, Bali, North Sumatra
and East Nusa Tenggara.
He said the five areas offered through competitive biddings
were located in Jambi, Central and East Java, Irian Jaya and East
Timor.
Priyambodo said Indonesia produced 1.42 million barrels of
crude oil and 180,000 barrels of condensate a day last year.
Pertamina also announced yesterday the range of natural gas
prices it sells to various industrial users.
The prices of natural gas sold to fertilizer plants were set
at a range between US$1 and $1.50 per million British Thermal
Units (BTU), to the petrochemical industry at $2, to the steel
industry at $0.65 for the gas used for production process and at
$2 for the gas used for power generation, at $2.45 to $3 for
electricity generation, at $3 for the cement industry and at
$2.70 for the state city gas company.
Priyambodo said Pertamina is still subsidizing prices, as the
production cost of gas is $5 per million BTU at present. (04)