WMO Block Development Management more simple than ONWJ Block

Jakarta, April 28, 2011 – Pertamina’s capability in managing oil and gas field in the offshore has been proven by its success stories in increasing production of Offshore North West Java (ONWJ) Block field which have level of complexity much higher than West Madura Offshore (WMO) Block. Pertamina would like to say thank you and appreciation to BP Migas, which recommended to the Government to appoint Pertamina as operator in the WMO block.

Pertamina as the operator in the ONWJ Block has succeeded in increasing oil production from the previous at 21,000 barrels per day to 30,000 barrels per day at current time and gas production amounted at 200 million cubic feet a day (mmscfd). Pertamina plans to synergize the operation capabilities in ONWJ with the management of WMO block, so it is expected to cut operational costs by 10%, which also will reduce the cost recovery.

Pertamina has prepared an investment commitment of US$1 billion for the management of WMO block within next 5 years and committed to increasing oil production from 13,400 barrels a day currently to 40,500 barrels a day and gas production from 138 million cubic feet a day (mmscfd) to 204 million cubic feet a day (mmscfd) by 2015.

To achieve the target of increasing production, Pertamina committed to drill 86 wells in 5 years consist of 11 exploration wells, 67 development wells and 8 workover wells.

Pertamina currently has more than 500 employees with an average of 20 years of experience in the offshore operations, which have good safety performance and proven to increase production. In the WMO management plan, Pertamina is also willing to maintain permanent local employees who work in the current WMO block, even providing career advancement opportunities for workers in WMO block to develop career in other Pertamina organization.

Complexity of ONWJ Block management compare with WMO block, see as details below:
Comparison Aspect
ONWJ
WMO
Area (Km 2)
8.279
1.615
Production Target 2011 (gross)


- Oil
31.000
13.400
- Gas
190
138
Offshore Structure/Platform
218
20
Offshore Manned Locations
11
3
Onshore Receiving Facilities (ORF)
3
1
Crude Storage Capacity
1 million barel
700 thousand barel
Subsea Pipeline


- Amount
375
14
- Length
1.600
300

Pertamina has a story of success in increasing oil production in the blocks that have been taken over, for example in Block Limau previously operated by Talisman, currently the production increasing by 6,000 barrels / day to 11,300 barrels / day after taken over by Pertamina. Similarly, Sanga sanga Block - Tarakan previously operated by Medco increased from 4,300 barrels / day to 7,500 barrels / day, Sukowaati Block that operated by Pertamina and Petrochina increased from 40,000 barrels / day to 48,000 barrels / day, and Block ONWJ (Offshore North West Java ) previously operated by BP rose from 21,000 barrels / day to 25,000 barrels / day.

Pertamina is the only oil company in Indonesia that successfully increased its production in the last five years. Pertamina's production in 2010 reached 190,700 barrels / day of oil and 1,458 million cubic feet of gas per day, equivalent to 443,500 barrels of oil equivalent.

In 2011, Pertamina targets 208,000 barrel a day of oil and 1,520 million cubic feet of gas a day or 470,310 barrel oil equivalent. To maintain production growth and additional new reserve in 2011, Pertamina targeted to drill 76 exploration wells and 221 development wells.

sumber: http://pertamina.com/index.php/detail/view/news-release/8122/wmo-block-development-management-more-simple-than-onwj-block