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OIL AND GAS-JAKARTA. PT Pertamina Hulu Mahakam (PHM) has obtained the Final Investment Decision (FID) approval from PT Pertamina Hulu Energi (PHE) to continue the implementation of the Field Development Optimization Project/OPLL-3B Offshore worth more than US$ 300 million in the Mahakam Working Area (WK) in East Kalimantan.
The scope of the OPLL-3B Offshore project includes drilling and connecting 32 infill wells as well as perforation and sand control (workover) activities that will be needed in the wells in the offshore fields of Peciko, South Mahakam, and Sisi Nubi in the Mahakam WK.
The proposed 32 wells consist of new wells and sidetrack wells spread across the three fields. Drilling activities are planned in stages starting in 2024. The OPLL-3B Offshore Work Plan has previously received approval from SKK Migas.
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The President Director of Pertamina Hulu Indonesia (PHI) John Anis revealed the company's commitment to continue investing in exploration and exploitation well drilling to support the achievement of national oil and gas production targets, energy transition policies, and PT Pertamina's net zero emission targets.
“The Mahakam WK is one of the backbones of Indonesia's oil and gas production. Currently, Mahakam WK's gas production is commercialized to meet the needs of the fertilizer industry, petrochemicals, power plants, and city gas in the East Kalimantan region, while the rest is used as liquefied natural gas (LNG) through PT. Badak NGL's facilities, to fulfill domestic contracts and any surplus is used for export according to the allocation set by the Indonesian government through the Ministry of Energy and Mineral Resources,” said John, quoted from Pertamina's official website, Thursday (22/2).
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John explained that the OPLL-3B Offshore project is expected to increase oil and gas reserves and contribute to the sustainability of Mahakam WK's production, create value creation for the company, and provide a multiplier effect for the regional economy, in the form of meeting domestic gas needs, Pertamina RDMP refineries, empowering local contractors, and increasing national capacity.
“We continue to take strategic steps to develop oil and gas wells to provide significant value for all stakeholders. Therefore, the work on the wells in the OPLL-3B Offshore project will use existing platforms to optimize the production facilities that are still functioning well,” John explained.
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According to him, the production wells in this project are expected to increase the reserves of Mahakam WK by about 75 Bcf of gas and 1 MMbbl of condensate. The peak production from this project is predicted to be reached in 2026, which is about 70 MMscfd for gas and 1,200 bbls per day of condensate.
John emphasized PHI and all its subsidiaries continue to encourage innovation and application of technology in the company's upstream oil and gas operations.
"We understand the subsurface character of Mahakam WK with a high natural decline rate which requires a lot of infill drilling. Therefore, in the OPLL-3B Offshore project, PHM increases the number of wells in the existing field and reduces the distance between wells to increase drainage or recovery factor,” John concluded.
