Pertamina Hulu Makes Its First Oil Shipment from Mahakam Block

Balikpapan, E Kalimantan (Antaranews Kaltim) - A subsidiary of state-owned energy company PT Pertamina, PT Pertamina Hulu Mahakam (PHM), on Friday made its first oil shipment from the Mahakam Block for Pertamina Integrated Supply Chain (ISC).

The shipment was made from the Senipah terminal, the main terminal for oil and condensate lifting in the Mahakam Block.

Pertamina has taken over full control of the big gas block in East Kalimantan from Total E&P Indonesie and Japan`s Inpex Corporation, after the contract of the two foreign firms expired on Dec 31 last year. Total and Inpex started the operation of the block in 1966.

The shipment of 150,000 barrels of oil, Handil Mix Crude, with Pertamina`s tanker MT Gede was for Balikpapan oil refinery of PT Pertamina in East Kalimantan.

The shipment of the crude oil showed that the takeover by the state energy company has been smooth," acting General Manager of PHM John Anis said in Senipah.

John Anis said PHM would give priority to supplying its production for domestic market, adding PHM would send all of its crude oil and condensate production to PT Pertamina ISC.

The loading of crude oil and condensate at the Senipah terminal to tanker MT Gede was with the use of Single Buoy Mooring facility operated by PT PHM.

Handil Mix Crude from the Handil field is one of two types of crude oil produced by PHM. The other one is Bekapai Crude Oil produced from the Bekapai field.

Indirectly, PHM also produces Badak Crude Oil from the Badak field operated by Vico Indonesia.

Other than crude oil PHM produces condensate -- Senipah Condensate and Bontang Return Condensate. Shipments of Bontang Return Condensate and Badak Crude Oil are made from the Santan terminal operated by Chevron Indonesia.

All production of crude oil and condensate from the Mahakam block would be used to feed oil refineries of PT Pertamina such as Balikpapan and Cilacap refineries and Bontang Return Condensate is for TPPI Tuban.

Pertamina Hulu Mahakam has been given a production target of 42,010 barrels of oil in lifting and 916 million standard cubic feet of natural gas per day from the Mahakam block.

PHM, which has been named the operator of the gas block in the Mahakam working area plans to invest US$1.7 billion in the working area, Pertamina`s Upstream Director Syamsu Alam said earlier.

The fund would be used for explorations, development and oil and gas production, Syamsu said, adding 69 development wells would drilled.

So far, PHM has drilled 14 wells and drilling of another well would be finished to guarantee sustainability of production, he said.

Before the takeover, under the previous operator Total Indonesie, the Mahakam block contributed 13 percent to the country`s gas production. (*)