President Director of PT Pertamina (Persero or State Own) Dwi Soetjipto stated after a meeting at the Office of the Ministry for Maritime Affairs here on Tuesday that early investment was intended to maintain oil and gas production in the working area prior to it becoming fully operational in 2018.
"It is estimated that an investment of $1.5 billion will be required for the post-2017 production," he remarked.
Dwi explained that investment is required to maintain oil and gas production for the drilling and maintenance of 19 wells in the oil and gas block in East Kalimantan.
"The 19 wells will become operational in the second quarter of 2017," he noted.
In case no one joins, the investment cost will be borne by Persero that is tasked with managing the Mahakam Block.
"That is an estimate, and the investment could be made by anyone who later joins the group (managers of the Mahakam Block). If the others do not join in, yes (the investment will come from) Pertamina," he revealed.
Despite every effort to ensure no significant decline in production, Dwi did not elaborate on the production target for the Mahakam Block when the transition takes place later.
Dwi noted that if Persero does not undertake any efforts, a sharp decline in oil and gas production will certainly occur.
"However, if we do (undertake efforts), we will be able to reduce the decline (in production)," he stated.
Dwi also pointed out that Persero could not calculate the percentage drop in production as maintenance was being carried out in the Mahakam Block, which is already developed and operational.
"That block is already old, so there is a decrease in production. However, what we did was how to reduce this decline. Now it is just that we are investing to add other wells, so there is no additional drop in production," he added.
(Reported by Ade Irma Junida/Uu.B020/INE/KR-BSR/A014)