Pertamina ready to increase West Madura`s oil production

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State oil and gas company PT Pertamina planned to increase West Madura block oil production to 30,000 barrels per day, a spokesman said.

Pertamina`s spokesman M. Harun said here on Thursday that the company will raise the production of the West Madura Block substantially to 30,000 barrels per day.

The oil block`s recent production managed by Kodeco Energy reached only 14,000 barrels per day, and Pertamina with an increased oil output in the last five years, Harun said.

Pertamina`s production in 2010 reached 190,700 barrels per day and 1.458 billion cubic feet of gas per day, the equivalent of 443,500 barrels of oil per day.

Production in 2011 is scheduled to reach 208,000 barrels of oil per day and 1.52 billion cubic feet of gas per day, the equivalent of 470,310 barrels of oil per day.

“We will drill 76 exploration wells and 221 development wells this year,” he said.

Harun also said the company also managed to increase the oil block`s production after the management was taken over by Limau Block previously managed by Talisman, and production rose from 6,000 barrels to 11,300 barrels per day after the take over.

Furthermore production of Sanga-Sanga Block which was previously managed by Medco had increased from 4300 barrels to 7500 barrels per day, Sukowati (Petrochina) from 40,000 barrels to 48,000 barrels per day, and ONWJ (BP) from 21,000 barrels to 25,000 barrels per day.

The cooperation contract with West Madura Block was signed by Pertamina and Kodeco on May 7, 1981, and after 30 years the cooperation will expire.

Pertamina had already expressed its desire to continue managing the block, however towards the end of the contract the government had approved a change in West Madura`s ownership participation rights by a letter representing the Director General of Oil and Gas Minister No 6989/13/DJM.E/2010 dated March 17, 2011.

According to the letter, 12.5 pct of the participation right of West Madura owned by Kodeco had been diverted from PT Citra Harapan Sinergindo and Madura CNOOC Ltd. to Pure Link Investment Ltd also by 12.5 percent.

Thus, West Madura`s participation rights which was 50 percent owned by Pertamina, Kodeco 25 percent, and CNOOC 25 percent become Pertamina 50 percent, Kodeco 12.5 percent, 12.5 percent of CNOOC, Sinergindo 12.5 percent, and Pure Link 12, 5 percent.

source : antara