17 Mar 2017 09:37

PHE Boosts Investment for ONWJ

JAKARTA - To boost its production, PT Pertamina Hulu Energi (PHE) is committed to increase its capital expenditure (Capex) significantly in 2017. The investment is prioritized to increase ONWJ and WMO production which become PHE’s mainstay.

 

PHE budgeted the capital expenditure amounted to US $ 507.7 million or equivalent to Rp6.7 trillion, increase 60.6% compared to 2016 which amounted to US $ 300.3 million. The investment is for financing 53 work area priorities on ONWJ North Sea of Jakarta and WMO in Madura Sea.

 

In PHE performance year 2016 presentation, Gunung Sardjono Hadi, President Director of PHE explain that PHE overall will increase its production, so the investment must also be increased, because there will be additional operational activities in the work area.

 

ONWJ become a PHE’s serious concern, because this block is a extended contract block with Gross Split mechanism, which do not get cost recovery anymore. "Even with the new contract, PHE is determined to maintain its production as emphasized by government," said Gunung.

 

By the end of 2016, according to Gunung, PHE’s ONWJ production reached 20.851 BOPD and gas production reached 98 MMSCFD. "Oil and gas production from ONWJ entirely channeled to the domestic demand," he said.

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