BP to inject more investment on ONWJ oil block

Anglo-American oil and gas firm BP Plc will invests some US$120 million next year on its Offshore North West Java Sea (ONWJ) oil block in a bid to maintain the level of oil and gas output from the block, the company?s executive has said.

?The larger part of the investment will be used to finance the construction of new four gas platforms and the drilling of 12 new wells,? John Kurz, Asset Manager West, BP West Java told reporters Tuesday during a visit to the company?s offshore production facilities.

In addition, BP would also spend anther US$ 150 million a year for operational expenditure, he said.

According to Kurz, current production from ONWJ is 50,000 barrels per day (BPD) of crude, some 300 million standard cubic feet per day (MMCFD) of gas and 5,000 BPD of liquefied petroleum gas (LPG).

ONWJ, which started oil production in 1971, reached a peak production level of 210,000 BPD in 1984. The company?s cumulative production from its three producing fields: Ardjuna, Arimbi and Bima has reached1.4 billion of oil equivalent (BOE)

Another BP official, Marjoli Wajong said that current reserve in ONWJ stood at 150 million barrels of oil and 700 billion standard cubic feet of gas.

BP sells its ONWJ gas through pipeline to state electricity company PLN to feed 260 million British thermal unit per day of gas (MMBTU) to Muara Karang and Tanjung Priok power plants in Jakarta and some smaller part to state gas company PT PGN. Gas supply contract to PLN will expire in 2004.

Marjorie said the four new gas platforms would be built to enable the company to maintain current level of gas supply to PLN and PGN.

According to Marjorie, gas production from ONWJ will sharply decline after contract with PLN expires.

?We predict to only produce some 100 MMCF of gas per day after 2004,? she said. (alex)