Amerada Hess, partners to flow gas, oil from E. Java block in 2004
Wednesday, March 27 2002 - 05:05 PM WIB
?Ujung Pangkah production sharing contract (PSC) partners have now submitted field development plans for two projects. Firstly, a development of the Ujung Pangkah gas accumulation and secondly, a joint development of the nearby Sidayu oil field and the Ujung Pangkah oil leg. The objective is to achieve first gas and then oil production in 2004,? the company said in a statement.
The company did not say the expected oil, gas production. However, a senior official from state oil and gas company Pertamina earlier said that gas production from Ujung Pangkah is expected to peak at 100 million standard cubic feet per day (MMCFD) in 2005.
At the end of 2001, the partnership signed a memorandum of understanding with Pertamina, to secure a commercially viable gas sales route. The gas will be sold to the industrial province of East Java, which is facing severe gas supply shortage.
Dana said that a three well appraisal drilling programme in the Ujung Pangkah was concluded in 2001 and the campaign identified recoverable reserves of over 450 billion cubic feet (BCF) of liquids-rich gas, far exceeding expectations before appraisal.
In addition, said Dana, a transition zone seismic programme in very shallow water will be conducted during the first half of 2002 to evaluate a possible western extension to the Ujung Pangkah field. If the results of this survey are encouraging, further appraisal drilling will take place this year, so that any additional volumes found can be accommodated within the development scheme.
Dana said a number of additional exploration prospects have been identified in Ujung Pangkah PSC area and these are being evaluated for further exploration drilling before the end of 2002
Ujung Pangkah PSC which is located offshore East Java is operated by Amerada Hess which holds 76 percent working interest, while Dana Petroleum and Gulf Indonesia Resources each hold 12 percent working interest. (alex) .