PetroChina to drill at least two wells in Jabung Block on Sumatera island this year

JAKARTA ( –PetroChina International Jabung Ltd. shows its commitment to continue the exploration activities in its Jabung Block in Jambi, central Sumatera. The company said it will drill at least two wells, namely Tiung-3 and NEB Ext-1,  this year following oil and gas discovery last year

The company’s plan to drill the two wells has been approved by the Special Task Force for Upstream Oil and Gas (SKK Migas) at the Energy and Mineral Resources Ministry (ESDM).

PetroChina said Tiung-3 well drilling has been started since early this month, while the drilling of NEB Ext-1 well is in the process of securing permit from related government institutions.

“The exploration activities in the two wells show the commitment of PetroChina to continue to develop Jabung Block although at the moment oil price continues to decline,” said General Manager Jabung Block Song Zhizong.

Song hopes this year’s exploration drilling program would bring about positive results, just like the results of previous drilling activities.

PetroChina has drilled two new wells in 2014 and 2015, which resulted in gas and condensate discovery in Tiung Utara-1 well. The discovery was found at Lower Talang Akar formation and sandstone reservoir at Lower Talang Akar formation with estimated gas output of 11.3 million standard cubic feet per day (MMSCFD) and 283 barrels of condensate per day (283 BCPD).

In August last year, PetroChina announced oil and gas discovery at Panen-3, Tiung Utara-1 and Tiung Utara-2 wells within Jabung Block, Jambi. The hydrocarbon discovery was found in Baturaja formation.

Tiung Utara-2 well has the potentiality to produce 18.2 MMSCFD of gas and condensate of 756 BCPD.

Budi Setiadi, Vice President for Partnership and Government Relation of PetroChina, said last year that the company expects to monetize the discovery in the near future to help meet gas needs of domestic market.

In 2016, PetroChina sets production target of Jabung Block at 52,938 barrels of oil equivalent per day (boepd), comprising of 13,966 barrels of oil per day (bopd) and gas lifting target (including LPG) at 154 MMSCFD.

PetroChina is the operator of Jabung Block. It develops the block with Petronas Carigali (Jabung) Ltd, PP Oil & Gas (Indonesia-Jabung) Limited and PT Pertamina (Persero) as non-operating partners.

The Jabung Block encompasses a sizable area 1643 sqkm located in two regencies, namely East Tanjung Jabung and West Tanjung Jabung. The area stretches almost 100 km from north to south. In this oil and gas work area, PetroChina is actively exploring and exploiting seven oil and gas fields.

PetroChina has been active in exploration and production over the past 13 years. In June 2002, it acquired Devon Energy, during which time PetroChina was operating five blocks, namely two blocks in Jambi (central Sumatra), one in Tuban (East Java) and two in Papua. The five work areas were the Jabung and Bangko Blocks PSC in Jambi, the Tuban Block JOB in Tuban, and the Salawati Island Block JOB and the Salawati Basin Block PSC in Papua. (*)



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