0 Pertamina EP finds new reserves at Sangatta

Pertamina EP, the upstream subsidiary of state-owned energy firm PT Pertamina, says it has discovered new crude oil reserves at its Sangatta field in East Kalimantan. The reserves might boost the dwindling output of the basin’s aging wells. Pertamina EP spokesman Agus Amperianto said on Sunday that production tests for the Tapah-1 exploration well in the eastern part of the Sangatta field had delivered 1,017 barrels of oil per day (bpd) and 1 million standard cubic feet per day (mmscfd) of gas. 

The tests follow Pertamina EP’s so-called oil-pool enlargement of exploration in its working areas, where the firm mapped potential reserves by expanding the width and depth of existing reservoirs. Pertamina EP has spent between US$10 million and $15 million to boost reserves while exploring, according to Agus.  “We hope this accomplishment can become a milestone for an output increase for the Sangatta field in the future,” he told The Jakarta Post over the telephone. 

Sangatta, which currently produces around 1,500 bpd of oil, was developed under Dutch colonial occupation and taken over by Pertamina in 1974. Its output has been declining by 18 percent a year. The field reached peak production of 9,000 barrels of crude oil per day in the 1970s and 1980s, which has dipped to 2,000 to 2,500 bpd in recent years.  Pertamina EP, according to Agus, expected that the Tapah-1 well would enter production in the second half of 2013, which would increase the output of Sangatta by about 50 percent to around 2,500 to 2,700 bpd of crude oil. 

Tapah-1’s peak production is expected to be around 1,200 bpd of crude oil for 10 to 15 years before declining. Agus, declined to reveal the size of the new reserves at Tapah-1, claiming that the firm would reveal the information after the well entered production and Pertamina EP could complete more studies. Pertamina EP discovered in 2012 that its Salmon Biru-1 exploration well, located 2 kilometers west of Sangatta, had potential reserves of 50 barrels a day of crude oil and 0.08 mmscfd of natural gas. 

The surveys were expected to generate more wells projected that might enter production within two years. Pertamina EP plans to drill 28 exploration wells in 2013 as well as conducting 2-D on 817 kilometers of its working areas and 3-D seismic surveys of 1,488 square kilometers. The firm said that it expected its overall average daily output for 2012 to reach 127,000 barrels of crude oil per day — slightly below the government’s target of 134,000 barrels per day — and 1,050 mmscfd of gas, also lower than the targeted 1,070 mmscfd. 

For 2013, Pertamina EP aims to produce 137,000 barrels per day of oil and 1,160 mmscfd of gas of its overall average daily output. The firm has allocated Rp 10.3 trillion (US$1.06 billion) for the investment in 2013, or higher than the previous allocation of Rp 7.2 trillion in investment for 2012.

source : the jakarta post