I.B. Sudjana opens two new oil fields

JAKARTA (JP): The opening of two new oil fields in the Kakap block with a combined daily production of 60,000 barrels makes the Natuna Sea the third largest oil producing area in Indonesia after mainland Riau and the Java Sea.

Minister of Mines and Energy I.B. Sudjana dedicated the two oil fields at a reception Tuesday evening.

The two oil fields, developed with an investment of US$180 million, are operated by Marathon Petroleum Indonesia Ltd. which owns 37.5 percent of the concession area.

Other partners in the block are Lasmo Oil and Novus Petroleum each with 18.75 percent, Pertamina with 10 percent and Louisiana Land and Exploration Indonesia Ltd. with 15 percent.

Foreign contractor bureau chief at state-owned oil company Pertamina, Zuhdi Pane, said that the two oil fields increased the total production in the Natuna sea to 213,000 barrels a day.

"Conoco and Amoseas have also been operating oil fields in the Natuna Sea with a combined production of 153,000 barrels a day, " he said.

Marathon's president R.B. Bath said that the two oil fields have a reserve of 50 million barrels, 10 million barrels of which are categorized as possible reserves and the remaining 40 million as proven.

Marathon has operated two oil fields in the same block with a combined production of 10,000 barrels a day. The first of its four oil fields was opened by President Soeharto on Aug. 5, 1986.

"We hope that starting next year the fields will produce 100,000 barrels per day," he said.

Pertamina's president Faisal Abda'oe said that the government might give additional incentives to attract more foreign investment in oil exploration.(04)