The company will also take over South Korean Kodeco Energy's operatorship of the block once the contract expires in 2011, the official said."The block will expire next year, so we will increase our stake to 60%.We will also become the operator, replacing Kodeco," Pertamina's vice president for communications, Mochamad Harun, told reporters.
Pertamina holds a 50% stake in the block, while Kodeco and China's CNOOC hold 25% each. When the contract expires in 2011, Pertamina will hold 60%, while the remainder will be held by Kodeco and CNOOC, Harun said, without giving details of the stakes Kodeco and CNOOC would hold. This will be a matter for the two companies to negotiate.
"Being an operator is part of our efforts to be a world class oil company," he added.
The West Madura block produces 30,000 b/d of oil and condensate as well as 205,000 Mcf/d of gas. The gas is distributed to state-owned utility company Perusahaan Listrik Negara, state-owned gas and transmission company Perusahaan Gas Negara and petrochemical company Petro Kimia Gresik.
The crude production is used to feed Pertamina's 260,000 b/d Balikpapan refinery in East Kalimantan and 348,000 b/d Cilacap refinery in Central Java.
As part of Pertamina's aim to boost its production, it will acquire two oil and gas blocks from an overseas company operating in the country, Pertamina finance director Afdal Bahaudin said Tuesday.
Pertamina aims to produce 700,000 barrels of oil equivalent/day by 2014, by acquiring block or companies which have assets, whether domestically or overseas, a 62% increase from current production of 432,000 boe/d, the president director Karen Agustiawan said in May.
China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html
