Pertamina plans to sign 20 oil and gas contracts in 1999
Pertamina plans to sign 20 oil and gas contracts in 1999
JAKARTA (JP): State oil and gas company Pertamina expects to
sign at least 20 oil and gas contracts this year, almost on par
with the 22 inked last year.
Pertamina's director of exploration and production Priyambodo
Mulyosudirjo said on Wednesday the country's economic and
political crises were not dissuading investment in the oil and
gas sector.
"Investors say the widespread unrest in various parts of the
country amid the political crisis have not discouraged them from
investing here since they have experienced worse situations
elsewhere in the world, including in Africa," he said at an
annual news conference reviewing results of oil and gas
exploration in the country in the previous year and prospects for
the coming year.
"We've never heard any company complaining that its
exploration was obstructed by social unrest."
He added the sharp decline in oil prices was also not a
discouragement since oil exploration was a long-term business and
oil prices may rebound in the near future.
Priyambodo announced the company's completion of negotiations
with several oil companies on contracts for the exploration and
development of four oil and gas blocks. They are the Aika block
offshore in Irian Jaya, Lapangan Kaya onshore block in South
Sumatra, Bengara-1 block offshore in East Kalimantan and Yapen
block onshore in Irian Jaya.
"The contracts are ready for signing now following the
approval given by President B.J. Habibie."
He said Pertamina was in negotiations with several other oil
companies on contracts for exploration and development of eight
oil and gas blocks.
"We are also set to start negotiating contracts for the
exploration and development of three oil and gas blocks and are
in the process of tendering five oil and gas blocks," he added.
Priyambodo said Pertamina would offer 36 new oil and gas
exploration contracts in 1999 for blocks situated mostly in the
eastern part of the country.
Of these, 31 contracts will be based on the standard
production sharing arrangement and the remainder through
technical assistance.
Priyambodo said 14 of the contracts would be tendered and the
17 awarded through direct negotiations.
Blocks available through direct negotiations include the
Bunguran block offshore (Natuna Islands), Masalima block offshore
(Strait of Malacca), Sabaru block offshore (South Sulawesi) and
Jayapura block offshore and onshore (Irian Jaya).
Among blocks on the open bidding list are Anambas in the West
Natuna Sea, Tarempa (West Natuna Sea), Papalang (Strait of
Malacca) and offshore Vlake block (Irian Jaya).
Blocks available under the technical assistance scheme are
Betung block offshore (Jambi), Jatirarangon block onshore (West
Java), Mambang Sebasa block onshore (South Sumatra), Telaga Said
block onshore (North Sumatra) and Securai block onshore (North
Sumatra).
Deputy chairman of Pertamina's office for foreign contractor
supervision Herutjokro said most blocks offered this year were
located in the eastern part of the country.
"Contractors' interest in the region has been increasing
following significant oil and gas discovery in Irian Jaya." He
added that most of the blocks in the eastern region were
underexplored and classified as frontier projects.
Priyambodo said as of January, 1998, the country's proven and
probable oil reserves were estimated at 9.68 billion barrels and
its proven and probable gas reserves at about 124.7 trillion
cubic feet.
Although capable of producing 1.52 million barrels of crude
oil per day (bpd), the country only produces 1.28 million bpd in
line with the quota set through its membership in the
Organization of Petroleum Exporting Countries. (jsk)