RI plans to boost its oil output by 160,000 bpd
RI plans to boost its oil output by 160,000 bpd
JAKARTA (JP): Within the next two years, Indonesia is
expecting to boost its oil output by 160,000 barrels of oil per
day (bpd), from the development of two large offshore oil fields
in the Makassar Straits and West Natuna, state oil and gas
company Pertamina said on Thursday.
Pertamina director for the management of production sharing
contractors, Iin Arifin Takhyan, said that the new projects would
also increase Indonesia's natural gas production by 490 million
cubic feet per day (mmcfd) and 45,000 barrels of liquefied
petroleum gas (LPG) per day.
He described the two projects as very important for the
Indonesian oil and gas industry.
"The development of the West Seno oil field is Indonesia's
first deepwater development project," Iin told reporters at a
press meeting.
Located in the Makassar Straits, the West Seno field would
produce 60,000 bpd of oil, and is slated for production by the
fourth quarter of next year, Iin said.
The field, which is located in water depths of 3,000 feet
(1,000 meters), is being developed by PT Unocal Indonesia, a
subsidiary of United States energy company Unocal Corp.
Unocal discovered the West Seno field in 1998 in the Makassar
Straits, off East Kalimantan.
Thus far, it has invested some US$700 million in exploration
drilling and is currently tendering for a floating oil rig and
other facilities.
Unocal has a 50 percent stake in contractor's share, with the
other half belonging to Mobil Oil Indonesia, a subsidiary of U.S.
energy company Mobil Oil Corp..
But a Unocal official said that Unocal planned to take over
Mobil Oil's interest, after the latter decided to release its
working interest in the field.
He said the plan was subject to Pertamina's approval.
Next to West Seno, Unocal will develop the Merah Besar field
of the Kutai basin located in the deep water of the Makassar
Straits.
"The West Seno field will also produce some 150 mmcfd," Iin
continued.
He said the gas would be transported to the Bontang industrial
estate in East Kalimantan.
At Bontang, fertilizer companies like state owned PT Pupuk
Kaltim and other plants can utilize the gas.
"The second project is the Belanak oil field, which has a
production capacity of 100,000 bpd, and is estimated to start
production by the year 2003," Iin went on.
"The field's Floating Production Storage Off-loading (FPSO)
facility will be the largest in the world," he said.
He said the off-loading facility would be used to off-load LPG
onto tankers. For the Belanak field, he expected LPG production
to reach 45,000 barrels per day.
Iin said that the field would also produce gas amounting to
340 mmcfd, which has been earmarked for a gas sales project to
Malaysia.
The Belanak field, located in West Natuna, is being developed
by Conoco Indonesia Inc., a subsidiary of American energy firm
Conoco Inc.
The company is hoping to finalize a gas sales contract with
Malaysia's state oil and gas company Petronas by April this year.
The gas will be delivered at a peak rate of 250 mmcfd to
Malaysia via an underwater pipeline.
Iin said that Conoco had spent $600 million for the
development of the gas field.
The development of the two projects is coming at a time, when
the local fuel consumption is rapidly depleting the country's oil
reserves.
Analysts have warned that Indonesia might become a net oil
importer by the year 2020.
At present the country is importing some of its fuel needs,
largely because of its limited oil processing capacity.
Government plans to tender 21 new blocks within the first
quarter of this year.
Iin estimated that the government would begin the tender
process next month.(bkm)