Sahibul Hikayat

Overview

On March 4, 1969, Atlantic Richfield Company (ARCO) entered the Indonesian oil and gas business as a result of its merger with Sinclair Exploration Company, which in 1967 was selected as the operator for the Offshore Northwest Java (ONWJ) Production Sharing Contract. Since that time, ARCO has explored under 17 Production Sharing Contracts and produced more than 1.3 billion barrels of oil equivalent (BOE), excluding the Sanga-sanga PSC in East Kalimantan. With the commencement of oil production in the ONWJ block in 1971, ARCO,became the first offshore oil producer in Indonesia. ARCO pioneered the Java gas business and grew to become the leading supplier to the domestic market.

Gas deliveries from the ONWJ block to Muara Karang, Jakarta started in September 1993
and from the Kangean block to Surabaya and Gresik, East Java in January 1994. The acquisition of Union Texas Petroleum (UTP) expanded AFtCO’s portfolio, adding an LNG business. The Sanga~sanga PSC was responsible for initiating the Indonesia LNG business 22years ago and continues to supply most of the gas to the world’s largest LNG facility at Bontang, East Kalimantan, in the 1990s, ARCO set the pace for exploration of Eastern lndonesia‘s frontier areas. This led to major gas discoveries in support of the future establishment of lndonesian’s third LNG center, Tangguh. Approximately 24 TCF of gas reserves discovered by ARCO in the Tangguh development area is sufficient to support a new multi-train Tangguh LNG facility. Recently, the Government of Indonesia gave Tangguh top priority as a national project in 1999. Commencement of production from Tangguh early in the next century will position ARCO as one of the top three oil and gas companies in Indonesia.

For the past 30 years, ARCO has worked as a PSC contractor to PERTAMINA, exploring and developing the abundant energy resources hidden beneath this vast country. ARCO currently holds interests in 6 exploration and 3 producing blocks. Of the 3 producing blocks, ARCO is the operator of Offshore Northwest Java and Kangean.