JAKARTA, NNC -- PT Saka Energi Indonesia, a subsidiary of PT Perusahaan Gas Negara Tbk (IDX:PGAS) or PGN in the upstream sector of oil and gas, keeps its promise to drill two exploration wells located in Pangkah Production Working Area and South Sesulu Exploration Work Area. In both blocks, Saka has 100 percent participation rights.
President Director of Saka Energi, Tumbur Parlindungan, said that the drilling work plan of the two wells is in accordance with the Work Program and Budget (WP&B) reported by Saka to the Upstream Oil and Gas Executive Task Force (SKK Migas) earlier this year.
According to Tumbur, the drilling of the two wells is part of Saka's efforts to maintain national energy security, as desired by the Government of Indonesia.
"We expect the drilling process runs as planned and produce results, so that it can add lifting of Saka Energi in the future. As we know the need for national fuel oil and natural gas continues to increase, hopefully our lifting can help Indonesia reduce fuel imports from overseas," said Tumbur in Jakarta, Thursday (7/26/2018).
He explained that the new well exploration program in the working area of Pangkah is done by initiating the drilling of TKBY-2 well by the end of June 2018.
"We drilled the well on June 30 to see the presence of hydrocarbons on the prospect. TKBY-2 well located about 10 km from Well Head Platform-B (WHP-B) production facility," explained he.
The drilling point which is not far from the block production facility, according to him, will increase the economics scale of the well, so it is in line with the company's program in optimizing the existing production facilities.
"We expect to find oil and gas reserves in Tuban, Kujung and Ngimbang. Before starting drilling, we have socialized and conducted praying with local fishermen community," he added.
The second exploration well that Saka will drill is West SIS-A#1 located in the South Sesulu block area. Tumbur targets the well can commence drilling in mid-August 2018.
To drill two exploration wells, Saka uses two jack-up rigs at about the same time. According to Tumbur, the sluggish investment activity in the national downstream oil and gas sector due to low oil prices did not reduce Saka's commitment to continue to increase production.
"Oil prices have started to improve in the second quarter of 2018. Hopefully in the future it will be even better. As operator of three oil and gas blocks in Indonesia, Saka shows its commitment to continue exploring oil and gas, because only by continuing to explore Indonesia can find a reserve replacement," said Tumbur.
For information, Saka Energi has 11 participating rights in the oil and gas block in the country and one abroad. The eight blocks already in production are Muara Bakau, Bangkanai, Ketapang, Ujung Pangkah, Muriah, Sanga-Sanga, South East Sumatra and Fasken Blocks in the United States.
Meanwhile the other three blocks have not produced oil or gas because they are still in the exploration stage, that is, the West Bangkanai Block, Wokam II, and South Sesulu. Saka has also just won the work area of Pekawai and West Yamdena working area from an open auction conducted by the Ministry of Energy and Mineral Resources.