PetroChina to invest $300m in Indonesia’s blocks
JAKARTA (The Jakarta Post/ANN) - Oil firm PT PetroChina International Indonesia plans to invest at least US$300 million this year to further boost production in its oil and gas blocks in Java and Sumatra.
PetroChina chairman Gong Bencai said the investment would support the operation of existing blocks, including the Jabung block in Jambi, the Tuban block in East Java and Selat Panjang in Riau.
In addition to maintaining the production of the blocks, it would also be used to drill 16 new wells and finance the workovers of 17 active wells.
“For the past two years, we generally put an investment of around $300 million annually. It’s safe to say that at least $300 million will be invested to support the operation of our current blocks,” Bencai told reporters in a press briefing on Wednesday.
PetroChina, a subsidiary of China’s state-owned petroleum giant China National Petroleum Corporation, began operation in Indonesia in 2002. Indonesia was PetroChina’s destination for its first overseas project.
PetroChina has already poured more than $5 billion in investment into the country and claimed to have paid $3 billion in taxes.
In total, it produces about 100,000 barrels of oil equivalent per day (boepd). Of the figure, the Jabung block, its largest operating block, generates 55,000 boepd.
The company expected output from the Jabung block to increase by 5,000 boepd year-on-year (yoy) to 60,000 boepd this year, Bencai said.
He said he hoped 2018 would be the harvest year for PetroChina because a number of wells drilled last year would begin their production.
“We call 2017 an effort year, while 2018 is a harvest year and 2019 a take-off year,” Bencai said.
With such planning, PetroChina would be able to “move forward at high speed” in 2020 and bring in around 80,000 barrels of oil per day (bopd) and around 600 million standard cubic feet per day (mmscfd) of gas.
Besides exploring new wells, the company will also reactivate a number of small blocks that have been abandoned because of their economic unviability, such as the Bangko block in Jambi.