Pertamina Invests Rp 9 Trillion in Mahakam Block

PT Pertamina will allocate US$700 million, equivalent to Rp9.4 trillion, to the Mahakam Block starting in 2018. This investment will fund the drilling of new wells to maintain production levels. As is known, the Mahakam Block is a mature field and will experience production decline without new drilling to increase capacity.

According to PT Pertamina Hulu Indonesia's report, oil and condensate production from the Mahakam Block in 2017 decreased to 46,420 barrels per day (bpd), compared to 69,908 bpd in 2015. For 2018, oil and condensate production is projected to further decline to 36,168 bpd, comprising 25,717 bpd from baseline production and 10,451 bpd from drilling and well intervention. By 2023, baseline oil production is estimated to fall to only 12,648 bpd.

Since 2015, Pertamina has invested in the Mahakam Block, even before assuming operatorship, as Total E&P Indonesie and Inpex Corporation reduced drilling activities ahead of the contract expiration this year. By the end of 2017, the state-owned company will have drilled 17 new wells in the Mahakam Block to sustain production from the following year.