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Indonesia discovers new oil reserves

Christian Fernsby |
Indonesia's state-owned oil company Pertamina Hulu Energi (PHE) through its subsidiary Pertamina Hulu Energi Offshore Northwest Java (PHE ONWJ) has discovered oil reserves from drilling activities at its FK-1 well.

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Topics: INDONESIA    OIL   

PHE's Managing Director Meidawati said in a written statement quoted by national news agency Antara on Tuesday that PHE continued drilling its FK-1 well on Indramayu waters in Indonesia's province of West Java despite the current COVID-19 outbreak.

Meidawati asserted PHE ONWJ has implemented a business continuity plan, by continuing to conduct in-depth evaluations of work plan priorities, operating costs and investments.

"PHE ONWJ continues to strive to maintain upstream investment levels to meet national oil and gas needs, both in production and lifting, but with some adjustments based on priority scale so that the project's economy can also be achieved," Meidawati said.

Meanwhile, PHE ONWJ's general manager Cosmas Supriatna explained that drilling activities at ONWJ are still running according to the schedule.

"The FK-1 well drilling has been completed with positive results. The initial drilling projection is 400 barrels oil per day (BOPD), but the well test recorded a higher yield of 987 BOPD," he said.

"In the meantime, we are still waiting for the FK-8 well drilling results which are expected to be completed by the end of April," he said.

In the first quarter, PHE ONWJ oil production reached 29,021 BOPD exceeding its target of 26,395 BOPD, or 10 percent higher than the company's planned figure. This oil production achievement also exceeded the state budget target of 28,809 BOPD.

Responding to the current conditions, PHE ONWJ has also taken anticipatory steps towards the impact of falling world crude oil prices.

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