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Pertamina approves Indonesia Energy’s drilling plan
PROJECTS & COMPANIES
UPSTREAM junior Indonesia Energy said this week that state-owned Pertamina had approved its technical programme and drilling budget for the onshore Kruh Block.
The Jakarta-headquartered company said on March 24 that Pertamina had also signed off on inviting service providers to bid for a contract to drill six produc- tion wells this year on the 63,000-acre (255-square km) block, which is located on the island of Sumatra.
Indonesia Energy said that following the approval it had started procuring the neces- sary services in order to begin once its oper- atorship for the block is renewed in May. The company said it was securing a drilling rig, other required services and all drilling goods.
The independent expects to wrap up the procurement processes in the second quarter, with drilling set to commence shortly after the operatorship renewal comes through.
Despite falling oil prices and the global coronavirus (COVID-19) outbreak, Indo- nesia Energy has said it remains on track to proceed with this year’s drilling cam- paign. The six wells, which will each cost an estimated $1.5mn, are expected to raise production and cash flow significantly this year. Indonesia Energy said the wells would bring its average production cost to $21.34 per barrel or less.
Discussing its plans for the 1mn-acre (4,047-square km) Citarum Block, which is onshore Java, the company said it had com- pleted a 2D seismic survey plan, the environ- mental baseline assessment and had secured government approval to begin the survey.
The new seismic data will allow Indonesia Energy to better define the reservoir and also to select the best drilling location for delineat- ing the gas discoveries.
Indonesia Energy president Frank Ingriselli said: “With the commencement of the well bidding process, we expect to have a drilling contractor secured in the near term and, with the permits issued by the govern- ment, we should be on track to significantly increase production and cash flow this year.”™
Image: Indonesia Energy
Sinopec Oilfield Service to boost capex in 2020
EAST ASIA
FINANCE & INVESTMENT
SINOPEC Oilfield Service has said it intends to up its 2020 capital expenditure by 18% year on year.
The company said on March 24 that it intended to spend to CNY3.4bn ($478.7mn) this year, up from CNY2.87bn ($404.1mn) in 2019. Sinopec Oilfield Service announced the increased expenditure on the back of a 544% year-on-year increase in 2019’s net profit, while revenue expanded by 19.6%.
The company said it would invest in new electrified drilling rigs to support Sinopec’s deep-well drilling campaigns in China as well as in equipment that would allow it to expand in the Middle East.
“It is expected that the fluctuation of inter- national oil prices will increase; the downward pressure on China’s economy is increasing, but the basic trend of growth amid stability and long-term improvement remain unchanged, and the basic trend of rigid growth in oil and gas demand remains unchanged,” Sinopec Oilfield Service said.
The company aims to win new service con- tracts worth CNY68bn ($9.57bn) this year, CNY39.6bn ($5.57bn) of which is expected to come from parent company Sinopec Group.
The company is investing in more sophisti- cated equipment in order to better support its
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