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)