Caltex expands enhanced recovery of oil

Caltex expands enhanced recovery of oil

JAKARTA (JP): PT Caltex Pacific Indonesia, the largest oil
producer in Indonesia, will intensify its enhanced recovery of
oil reserves in its contract area in Riau with an investment of
US$50 million per year, the company's president says.

Baihaki H. Hakim told reporters here Thursday that the
company's steam-flood enhanced oil recovery (EOR) technology will
be able to tap about 30 percent of the oil deposits in the
contract area.

Caltex, which extended its 31,700-square-kilometer contract
area in 1983 to the year 2001, currently produces 698,500 barrels
of crude oil per day from 95 blocks.

He said that even though the company will spend more for the
EOR program, it will be able to maintain its production costs at
a maximum level of US$5 per barrel.

Caltex, a subsidiary of the Caltex Corporation of the United
States, is billed to have the lowest production cost in
Indonesia.

"Our cost for producing oil in onshore fields is even around
$3 per barrel," Baihaki said.

He said that Caltex expects to get new contracts in three
areas -- offshore Bengkalis, Bengkalis Island (both in Riau) and
Nias Island (in North Sumatra) -- from the state oil company
Pertamina.

"I believe that our production costs in the new areas will
range at between $6 and $10 per barrel," he said, adding that the
cost will be far lower than the $15 per barrel estimated by
Pertamina for oil production in frontier areas.

G.A.S. Nayoan, Pertamina's director for exploration and
production, told the Post earlier that the cost for producing in
onshore frontier areas may reach $14 per barrel, while the
production costs in offshore fields may reach $17. (fhp)