"They suffered from the losses because the wells they were drilling did not strike oil reserves," Susilo Siswoutomo, deputy minister for energy and mineral resources, said.
Jakarta (ANTARA News) - A total of 10 oil contractors have suffered from a loss of US$1.65 billion during their operations in Indonesia in the 2009 - 2012 period, a new deputy minister said.

"They suffered from the losses because the wells they were drilling did not strike oil reserves," Susilo Siswoutomo, deputy minister for energy and mineral resources, said here on Wednesday.

He said that there were 22 unproductive wells located in deep seas in the Indonesian eastern region.

Susilo Siswoutomo was installed by President Susilo Bambang Yudhoyono on Tuesday as the deputy minister for energy and mineral resources, succeeding Rudi Rubiandini.

Susilo said that the losses suffered by the 10 contractors were proof of the high risks in oil exploration business.

"The contractors should bear the risks if they fail to find oil reserves in their wells they were drilling. It is only large-size companies with big funds which have the courage to make investment in this sector," the new deputy minister said.

The biggest contractor which suffered losses was ConocoPhillips with a loss of US$310.7 million. The biggest well, which had no oil reserve, was Lengkas-1 in Blok Semai Block, Papua, with contractor Murphy worth US$214.4 milion.

ConocoPhilips` losses were in Kaluku-1 well, Blok Kuma, Makassar, with a loss of US$149.6 million and Mutiara Putih-1 well in Arafua, Maluku, with a loss of US$103 million.

ExxonMobil suffered a loss of US$302.3 million in four wells of two blocks, namely Rangkong-1 in Blok Surumana, Makassar Strait worth US$50,6 million and three wells in Blok Mandar, Makassar Strait, namely Kris-1 (US$45.3 million), Sultan-1 (US$109.7 million) and Kriss Well-1 ST (US$24.4 million).

Hess suffered losses in two wells in Blok Semai V, Papua worth (US$222.7million), namely in Andalan-1 (US$164.4 million) and Andalan-2 (US$52 million).

The other loss was suffered by Murphy in Lengkuas-1 well in Blok Semai II, Papua worth 214.6 million dollars.

Marathon also experienced losses in four wells in Blok Pasang Kayu, Makassar Strait worth US$208.7 million, namely in Bravo Well (US$102,7 million), Romeo Well (US$23.1 million), Romeo B-1 (US$25 million) and Romeo C-1 (US$57.9 million).

Statoil suffered in three wells in Blok Karama, Makassar strait (US$174,1 million), namely Gatot Kaca-1 ST (98.2 million), Anoman-1 (43.3 million), Antasena-1 (32.6 million).

Tately had two unproductive wells in Blok Budong-Budong, Makassar worth 51.5 million dollars, consisting of KD-1 (34 million dollars) and LG-1 (17.5 million dollars).

In the meantime, Talisman found no oil reserves in Lempuk-IX well in Blok Sageri, Papua valued at US$84 million, CNOOC in Sindoro-1 well, Blok South East Palung Aru, Kepulauan Aru, worth US$50 million and Japex in Banteng-1 well, Blok Buton (US$31.5 million).(*)

Editor: Heru Purwanto
Copyright © ANTARA 2013