PetroChina eyes higher production at Jambi field

Leony Aurora, The Jakarta Post, Jakarta

China's largest oil producer, PetroChina Co., hopes to increase production at its Jabung oil and gas field in Jambi to 38,300 barrels of oil equivalent per day (boepd) this year.

The company's Indonesian unit plans to drill 19 development wells for testing and 14 work-over wells for production in the field this year to lift output from the current 28,300 boepd, vice president Budi Setiadi said on Monday.

"The area produces more gas (than oil)," said Budi. "We have commitments to export the gas to Singapore."

He said a blowout that occurred in a gas well in the field in late March would not prevent the company from reaching its target, adding that the incident had been brought under control.

Fire erupted in the Gemah-21 well in Jabung field, sending about 400 barrels of oil-based mud used in the drilling process to sprinkle down industrial forests surrounding the site.

Several newspapers, including The Jakarta Post, reported that the Jambi Environmental Impact Management Agency had said the mud, containing 3 percent oil, polluted hectares of the industrial forest, whose concessional rights are held by PT Wira Karya Sakti (WKS).

According to PetroChina, oil-based mud was found within a radius of between 250 meters and 500 meters from the well, depending on the wind and the position of the trees.

"A team commenced a study on the impact of the blowout on acacia trees on April 29," said Budi. "Results are expected within six months."

The team is comprised of representatives from PetroChina, WKS, the Bogor Institute of Agriculture, Jambi University and the local forestry agency.

"We will use the study results to calculate the damages that we have to cover," Budi said.

PetroChina and Malaysia's state-owned Petroliam Nasional Bhd. each own 45 percent of the Jabung field, with state oil and gas company Pertamina holding the remaining 10 percent.