Indonesia's state oil company predicts a rebound in domestic exploratory drilling this year after a sharp drop in 1994.
Pertamina Exploration Director Priyambodo Mulyosudirdjo estimates 128 exploratory wells will be spudded in 1995, compared with 79 in 1994 and 126 in 1993. He contends the drop in such drilling last year resulted from low oil prices and Pertamina implem enting new fiscal incentives too late for foreign operators to include new wells in 1994 budgets.
In January 1994, Indonesia disclosed an increase in the production split to 35% from 20% for companies exploring in remote, high risk frontier areas, including Irian Jaya.
Pertamina predicts 117 exploratory wells will be drilled in western Indonesia and 11 in eastern Indonesia. Plans call for seismic survey coverage to rise to 78,814 line km in 1995 from 68,759 line km in 1994. An early forecast for 1994 was 103,462 lin e km.
In addition, companies are expected to drill 586 development wells in 1995 vs. 575 in 1994. The original forecast was for 634 development wells in 1994.
Pertamina expects to sign four production sharing contracts (PSCs) soon and has another 17 under negotiation. It signed four PSCs this month. About 25 onshore and offshore PSCs are active, and eight more are to be put up for bid this year.
Copyright 1995 Oil & Gas Journal. All Rights Reserved.
