Pertamina EP – the upstream subsidiary of state-backed PT Pertamina – is confident that newly discovered crude oil reserves at its Sangatta field in East Kalimantan will enable the company to boost the declining output of the basin's aging wells.
In a disclosure released Sunday, Pertamina revealed that production tests for the Tapah-1 exploration well in the eastern part of the Sangatta field has flowed 1,017 barrels of oil per day (bopd) and one million standard cubic feet per day of gas.
According to a case study published by Pertamina, the field was discovered by 1939 by Batafsche Petroleum Maatschappij (BPM) – the company was at that time a subsidiary of Royal Dutch Shell – where it encountered a shallow oil bearing reservoir in the Balikpapan Formation. Pertamina took over Sangatta in 1970, and it started oil production from the field in 1972.
Indonesia's Ministry of Energy and Mineral Resources confirmed in April last year that the field's production stands at 2,091 bopd.
Commenting on its exploration plans for this year, Pertamina said in the disclosure that it is planning to drill up to 28 exploration wells this year. The company is also aiming to conduct 2D seismic surveys on 313 square miles (817 square kilometers) of its working areas and 3D seismic surveys on 574 square miles (1,4800 square kilometers) of its working areas.
Pertamina announced in December last year that it has allocated $3.1 billion for its upstream budget this year in line with the Indonesian government's aim to boost the country's oil production output to one million bopd.
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