Pertamina EP Exploring for New Oil & Gas Reserves in Tuban

Pertamina EP is exploring for new oil and gas reserves in Tuban, East Java to help increase Indonesia’s energy reserves.

Pertamina’s Upstream Director Syamsu Alam said that despite low global crude prices, exploration activities must not stop, because the survival of the upstream oil and gas industry lies in finding new reserves. (Read: Pertamina EP Earmarks IDR 217 Billion for Oil & Gas Exploration in Papua)

One ongoing exploration activity is the Tapen Well, in Sidoharjo village in the Senori subdistrict of Tuban, East Java. Pertamina subsidiary Pertamina EP is working on this well.

The Tapen structure was first drilled in 1998. Drilling continued in 2012. “This is one place we hope to find new reserves. Expectations for reserves in Tapen are high,” said Syamsu, in a written statement, Friday (22/7).

Meanwhile, Pertamina’s President Director Rony Gunawan said that his company is drilling delineation well TPN-2. The aim is to prove the hydrocarbon reserves in the Tapen structure. The next phase for the Tapen structure will be determining its exploration status. Following that, the plan of development (PoD) will be submitted.

Pertamina projects that oil and gas production will reach 656,000 barrels of oil equivalent per day (boepd) by the end of 2016, as national and overseas production increases. (Read: Semester I 2016, Pertamina’s Oil & Gas Production Up 12.5 Percent)

This projected production is an 8.1 percent increase on actual production in 2015. Last year, Pertamina produced 606,700 boepd.

The state-owned company’s oil production is projected to increase to 313,000 bph in 2016, up from 278,000 bph last year. Gas production is projected be rise from 1.9 bscfd to 1.99 bscfd.

Domestic production also grew from 492,500 beopd to 539,000 beopd, thanks to increased production from the Banyu Urip field this year. Pertamina’s production from this field is projected to reach some 75,000 boepd. Additional production of some 50 mmscfd is also expected from the Matindok Gas Development Project. (Read: Pertamina EP Production from Sangasanga Field Up 33 Percent)

Overseas production was also up some three percent to 117,000 boepd. Assets in Algeria contributed to this increase, following the development of additional production facilities. Other contributing factors were the success of water injection activities on assets in Iraq, and potential from mergers and acquisitions.