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Indonesia Pertamina to expand West Madura Offshore Project

Pertamina adds six platforms at West Madura Offshore

The Indonesia national oil company (NOC) Pertamina and its partner Kodeco from South Korea, are ready to call for bid (CFB) six new platforms to expand the West Madura Offshore (WMO) project offshore East Java in Indonesia.

Since the Indonesian Government set to Pertamina the goal to become a leader among the other national oil companies in the region, the local champion is reviving all the maturing or declining oil and gas fields.

In production since 1981, West Madura Offshore is one of these oil and gas fields which have reached their peak of production in the years 2000s and started to decline until 2012 by nearly 50%.

Pertamina_West_Madura_Offshore_Expansion_MapDuring its first phase of development West Madura Offshore was operated by Kodeco and reached a production of:

 – 26,000 barrels per day (b/d) of oil

 – 170 million cubic feet per day (cf/d) of natural gas

Anticipating some changes in its 30 years production sharing agreement (PSA), Kodeco minimized investments on the last years of its contract, leaving the production to decline on the last years.

Since 2012, Pertamina takes the helm of the West Madura Offshore Project with the ambition to restore production until the end of the new PSA in 2031.

With the new set up, the working interests of WMO oil and gas field are shared between:

 – Pertamina 80% is the operator

 – Kodeco 20%

Pertamina to award WMO EPC contract  in 2014

Since 2012, Pertamina and Kodeco proceeded with investment program to curb the decline of production in West Madura Offshore project.

For the first time, the average production exceeded 16,000 b/d in 2013.

While the daily production can reach 18,667 b/d of crude oil and 113.9 million cf/d of natural gas West Madura Offshore is suffering from too many and too long disruptions.

Pertamina_West_Madura_Offshore_Platforms_ExpansionTherefore Pertamina and Kodeco has decided to spend $900 million capital expenditure to expand West Madura Offshore with six new offshore platforms.

Currently West Madura Offshore is operated with only 20 production wells.

Therefore the priority is to improve the reliability of the existing platforms.

Pertamina is targeting 22,600 b/d of crude oil and 114 million cf/d of natural gas in 2014.

Then in adding six platforms, Pertamina is expecting to come back close to the previous peak of production.

These six platforms should support fourteen new production wells that should bring additional 12,000 b/d of crude oil.

With these new platforms, Pertamina and Kodeco set the goal to 26,000 b/d to 27,000 b/d of crude oil by 2015.

To meet this target, Pertamina and Kodeco must issue the call for bid without delay, so that the engineering, procurement and construction (EPC) contracts could be awarded in 2014 for production in 2015.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

4 thoughts on “Indonesia Pertamina to expand West Madura Offshore Project”

  1. Pingback: Pertamina adds six platforms at West Madura Offshore | Offshore Bulletin

  2. Dear Madams/Sirs,

    My name is Jason Ko,a business development manager working in GS Engineering & Construction Corp. here in Korea.
    Thank you for your provision of the information associated with West Madura field development.

    However, I still have uncertainty on that Kodeco have its shares as a partner of Pertamnina. As far as I have known here in Korea, the company, Kodeco does not exist any more.Its shares could be transferred to KNOC (Korea National Oil Company), however, I don’t think like that.

    I just have believed that the shares of Kodeco have already been bought by Pertamina for execution the field development plan. Therefore, I think that the field is controlled and governed by Pertamnia with 100% shares on the field.

    If there is discripancy or incorrect information on myself, then would you please response to my message by return?

    Thank you for your reading my messages.

    Hope to receive your response.


    Jason Ko

    1. The Pertamina’s subsidiary has an 80 percent stake in the WMO block, while former block operator South Korea’s Kodeco Energy Co., Ltd. holds the remaining 20 percent

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