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)