PetroChina Adds Five Wells at Jabung Block

Monday, 15 January, 2007 | 15:35 WIB

TEMPO Interactive, Jakarta: Chinese oil company PetroChina International Jabung Limited will add five new exploration wells in Jabung, Jambi, in 2007.

Zhang Xuewen, General Manager of PetroChina International, said that the adding of the new wells was aimed at maintaining gas production that will be channeled to Singapore through the 450-kilometer long under-sea pipeline.

Zhang explained that the five fields to be developed are located in West Betara and South Betara (two fields each) as well as South West Betara (one field).

For the development, PetroChina has provided investment funds of US$372 million, or Rp3.3 trillion.

“We will use the US$128 million funds as capital investment and the remainder will be used for non-capital investment,” Zhang told reporters in Jambi on Friday (01/12).

According to him, the development of exploration wells at Jabung will require between US$2 million and US$3 million per well with an average production cost of US$7 per barrel.

Compared to last year, the company's investment has increased by US$107 million.

“Last year, we produced 53,725 barrel oil equivalent per day/BOEPD. This year, we want to maintain production at between 54 and 55 BOEPD.”

According to PetroChina data, out of 2006 production of 53,725 BOEPD, 18,200 BOEPD were aimed at gas sales, with 13,125 BOEPD aimed at crude oil sales.

The remainder was the results of condensate and propane-butane gas sales, used in the mixture of liquid petroleum gas (LPG).

Marike Pulonggono, spokesperson for PetroChina, said that the ratio of his company's success reached 83.34 percent this year.

“From six explorations that we carried out, five of them succeeded,” said Marike.

The failed exploration well, he said, was located at North Kabul, Jabung Block.

Zhang said that this year gas production would be intended for Singapore as the selling price there is better.

“Last year, it was at around US$7-8,” he said.

Although most of the gas production will be aimed at Singapore, based on the agreement that Upstream Oil and Gas Executing Body (BP Migas) and PetroChina signed, gas supply will be also intended to meet the demand of Gas-Based Electric Generating Plant of Tanjung Jabung at a price of US$1.

RIEKE RAHADIANA