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The consortium operating the Jabung oil and gas block, which
includes Chinese oil giant Petrochina, plans to spend US$372 million up
until the end of the year on the development of the block, which is
located in Jambi.
The investment is aimed at maintaining the production level of oil and
gas in the block at around 51,000 barrels of oil equivalent per day,
Petrochina representative Yin Xiaohua said Thursday in a media release.
Still, the output will be slightly lower as compared to last year's
51,200 barrels of oil equivalent per day.
Of the $372 million, Petrochina will allocate $128 million for capital
investment and $244 for non-capital investment for the purpose of
drilling 5 new exploratory wells, Xiaohua said.
Last year, the company spent $265 million on the development of the
block.
Previously, the gas produced by the block was exported to Singapore by
pipeline. But, in mid 2006, the company decided to deliver the gas to
the gas-fired Tanjung Jabung power plant in Jambi amid rising domestic
demand.
The Jabung block is 27.85 percent owned by Petrochina International
Jabung, 27.85 percent by Malaysia Petronas Carigali, 30 percent by PP
Oil & Gas and 14.28 percent by PT Pertamina.
Beside Jabung, Petrochina also operates another five blocks in
Indonesia: Salawati basin and Salawati island in Papua, Tuban in East
Java, Bangko in South Sumatra and South Jambi in Jambi.
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