Oilfields development
Pertamina to pump more gas from ONWJ
Pertamina Hulu Energy Offshore Northwest Java (PHE ONWJ), state oil and gas firm Pertamina’s subsidiary operating in the ONWJ block, plans to construct three new gas production platforms in
the area.
The platforms will be constructed at the APN gas field in the block, PHE ONWJ general manager I Tenny Wibowo said Monday.
“The POD [plan of development] has been approved by BPMigas. We will begin construction next year. Hopefully production can begin by the end of 2011 and reach its peak by 2012,” Tenny said. The project is expected to cost PHE ONWJ around US$150 million in investment, for the platforms drilling and pipelines.
Tenny said the platforms would contribute around 50 million standard cubic feet of gas per day (mmscfd). At present there are three platforms at the APN gas field, with a total production of 205 mmscfd.
The gas is supplied to state power firm PT PLN, state gas distributor PT PGN and fertilizer producer PT Pupuk Kujang. “We will soon sign a sales and purchase agreement to supply gas to Pertamina’s refinery in Balongan, West Java,” Tenny said.
As for a buyer of the gas from the new platforms, Tenny said PHE ONWJ was still discussing this with the possibility of supplying gas to Pupuk Kujang. PHE ONWJ also expects to boost its oil production from 26,800 barrels per day (bpd) this year to 31,000 bpd next year.
Tenny said PHE ONWJ would accelerate its production and development activities, including the drilling of 10 delineation wells, to reach this target. The ONWJ block covers a 8,300-square-kilometer area of the Java Sea, stretching from north Cirebon to the Thousand Islands region.
Pertamina began production in in the block in June 2009 when its subsidiary, Pertamina Hulu Energy (PHE), acquired BP’s interests in the block in a transaction worth US$280 million. At present, the composition of ownership in the block is PHE ONWJ Ltd. (46 percent); China’s CNOOC ONWJ Ltd. (36.72 percent); Inpex Jawa Ltd. (7.25 percent); Orchad Energy Java BV (5.03 percent); and Talisman Resources Ltd. (5 percent).
The block will be Pertamina’s mainstay to meet its oil production target in 2011. Upstream oil and gas regulator BPMigas has set a production target for the company of 132,000 bpd in 2011, up from 130,309 bpd, which was the production estimation for this year. Indonesia expects to produce 970,000 bpd of oil next year, up from this year’s target of 965,000 bpd. Pertamina is expected to contribute significantly to the increase. “Pertamina’s production in several fields, including ONWJ, has potential to increase,” BPMigas’s chairman R. Priyono said.
As of today, the average oil production was 957,932 bpd.
