Pertamina's Libya oil blocks could contain 1b barrels
Pertamina's Libya oil blocks could contain 1b barrels
Leony Aurora, The Jakarta Post/Jakarta
State oil and gas firm PT Pertamina may have more than 1 billion
barrels of oil reserves in two Libyan blocks whose concession
rights it recently acquired.
The Sabrata offshore block may contain 690 million barrels of
oil, while the onshore Sirt block may contain between 300 million
and 400 million barrels in reserves, Pertamina president director
Widya Purnama said on Friday.
"We will start drilling as soon as possible," Widya said,
adding that the Sirt block was ready for drilling with the
seismic tests already having been conducted.
Pertamina was among 19 winners of a tender for oil blocks in
Libya, where Africa's largest crude oil reserves lie. The winners
of the tender were announced on Oct. 2. Indonesia's largest
privately controlled oil and gas company, PT Medco Energi
Internasional, entered bids for four blocks, but failed to win
any of its bids.
Widya said Pertamina, through its subsidiary Pertamina EP
Libya Ltd., would form a joint venture, in which it would hold a
majority 55 percent stake, to explore the blocks.
Partners in the joint venture could include Indonesian as well
as foreign companies, he said.
"We will sign the contract on Oct. 15 in Tripoli," said Widya.
Other successful bidders in the tender were U.S. energy giant
ExxonMobil Corp., Italy's Eni Spa and Japan's Mitsubishi Oil Co.
Based on the winning bids, the Libyan government will receive
between 71.5 percent and 92.5 percent of any petroleum produced
by the blocks, as well as pocketing signing bonuses totaling
US$103.4 million,
The figures of the production splits and signing bonuses
offered by Pertamina have not been released.
The surge in global crude prices has prompted oil companies to
boost exploration activities. Crude prices in New York have
jumped by 42 percent this year, touching a record high of $70.85
per barrel on Aug. 30.
Pertamina has lagged behind its counterparts in Asia,
including Malaysia's Petronas, in acquiring acreage and producing
oil abroad.
Many of Pertamina's smaller and aging fields in Indonesia are
underdeveloped, waiting for partners with the financial and
technical ability to develop them.