PT Pertamina Hulu Mahakam (PHM), a subsidiary of PT Pertamina Hulu Indonesia (PHI), is set to initiate drilling for new oil and gas wells in the Mahakam Block, East Kalimantan.
This follows PHM’s receipt of the final investment decision (FID) approval from PT Pertamina Hulu Energi (PHE), the Upstream Subholding of Pertamina, to proceed with the US$ 300 million (IDR 4.6 trillion) project known as the Optimization of Development of Fields (OPLL-3B Offshore) in the Mahakam Working Area (WK).
“WK Mahakam is one of the backbones of Indonesia’s oil and gas production. We are committed to continuing to invest in the drilling of exploration and exploitation wells,” stated John Anis, President Director of PHI, on December 18, 2023.
The scope of the OPLL-3B Offshore project involves the drilling and connection of 32 infill wells, strategically positioned among existing wells. Additionally, activities such as perforation and workover (well intervention) will be carried out on wells in the offshore Peciko, South Mahakam, and Sisi Nubi fields in the Mahakam WK.
“These proposed 32 wells consist of new wells and side track wells distributed across the three fields,” explained John.
The drilling activities are scheduled to commence gradually starting next year. John added that the work plan for OPLL-3B Offshore had previously received approval from the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas).
He mentioned that the project would add to the gas reserves and contribute to the sustained production of the Mahakam WK.
The production wells from this project could increase the Mahakam WK reserves by around 75 billion cubic feet (bcf) of gas and one million barrels (mmbbl) of condensate.
“The peak production from this project is predicted to be achieved in 2026, at around 70 million standard cubic feet per day (mmscfd) for gas and 1,200 barrels per day of condensate,” he added.
John expressed hope that the OPLL-3B Offshore project would create value for the company and have a dual effect on the regional economy, including meeting domestic gas needs.
Currently, Mahakam WK gas production is commercialized to meet the needs of the fertilizer industry, petrochemicals, power plants, and city gas in the East Kalimantan region.
A portion of the gas is also utilized as liquefied natural gas (LNG) through the facilities of PT Badak NGL to fulfill domestic and export contracts.
“We continue to take strategic steps to develop oil wells to provide significant value for all stakeholders,” concluded John.
