State energy company Pertamina is preparing a preliminary study on two oil fields in Iran to secure energy supply for Indonesia over the next decade. Exploration of Iranian petroleum areas might increase the company’s reserve by 5 billion barrels.
The study is part of a deal with the Iranian oil giant National Iran Oil Company that allowed Pertamina to asses Iran’s Ab Teymour and Mansouri oil fields, said Pertamina’ president director Dwi Soetjipto. He expects the study will be completed in six months.
Iran is now revising its petroleum contracts to allow sharing oil production with foreign companies such as Pertamina. Previously, all production from Iranian oil fields had to be sold to the Iranian government.
For the last two years, Pertamina has been determined to acquire oil blocks abroad, developing interest in reservoirs in Algeria, Malaysia and Iraq, as domestic production continues to decline. Indonesia consumes 1.4 million barrels of oil equivalent per day (BOE/D), a figure set to rise as its population and economy continue to grow, making exploration abroad indispensable, Dwi said.
Pertamina targets a production of 1.9 million BOE/D by 2025 and 2.04 million by 2030. By April, it produced 641,000 BOE/D in oil and gas, 17 percent more than last year.