Australian oil and gas producer Santos is drilling a third oil well at the Jeruk field to determine oil reserves but any production will not come on stream this year, a company spokesman said.
Mines and Energy Minister Purnomo Yusgiantoro has said he hoped Jeruk, one of Indonesia's major new upstream projects, could begin pumping oil this year. The field is off East Java province.
“We are drilling the third well at Jeruk 3 to determine oil reserves. Output from Jeruk is still a long way to go because there is much work to do,” a spokesman said.
“It is impossible Jeruk will come on stream this year,” he said, without giving a target start date.
An official at oil watchdog BPMIGAS said the government wanted Jeruk producing as soon as possible because of Indonesia’s declining oil production.
Jeruk, majority-owned by Santos, will have an estimated production rate of 50,000 barrels per day (bpd), although Indonesian officials have said it could ultimately pump two or three times that much.
Santos may produce around 15,000 bpd of oil from the nearby Oyong field at the end of March.
