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JAKARTA (RAMBUENERGY.com) – Indonesia’s state energy company PT Pertamina has decided to stop its exploration and production activities in two oil and gas blocks overseas, namely SK-305 block in Malaysia and Block 10 and 11 in Vietnam, a company official said.
The decision to cease the exploration and production activities in the two blocks was made because the blocks were not economically viable under the current oil price, said Pertamina Hulu Energi (PHE) president director Gunung Sardjono Hadi said, as reported by Investor Daily.
SK-305 block is located in offshore Serawak Malaysia. PHE said its other partners have also agreed to cease the development of the block. PHE partners with Petronas Carigali and PetroVietnam Exploration Production Corproation (PVEP) in developing the block.
The block is operated by PCPP Operating Company Sdn Bhd.
Block 10 and 11 in Vietnam is also being developed jointly by the three companies. As for these two blocks, Pertamina does not only stop the development, but pull out altogether from the block. Hadi said PHE pulls out from the blocks after conducting comprehensive study, which covers technical and commercial aspects of the development of the blocks.
PHE said the decision will not affect the company’s oil production target this year. This year, PHE targets to produce 63,930 barrels of oil per day (bpd) and gas rpodcutino of 652 million standard cubic feet per day (MMSFCD), down from 678 mmscfd last year. (*)
