Dana Petroleum 2002 Indonesian activities
Friday, March 28 2003 - 03:11 AM WIB
2002 saw a number of key milestones achieved towards development of the Ujung Pangkah gas field (Dana 12%), discovered by the Pangkah co-venturers in 1998. This was despite some delays caused by a major government reassessment of the roles of state oil bodies within the Indonesian oil and gas industry.
The Ujung Pangkah Plan of Development was approved by Pertamina in August. It features up to three minimum facility offshore wellhead platforms with export via a 16? pipeline to an onshore gas processing facility, This paved the way for the signature in December of a Heads of Agreement with PLN, the regional electricity utility, to purchase the gas from the field. This agreement is a precursor to the final Gas Supply Agreement, which is expected to be signed by mid 2003, allowing field development to commence in the second half of the year and first gas to be produced by 2005.
Preliminary interpretation of the transition zone seismic survey, acquired in very shallow water in 2002, has increased confidence in the presence of a significant western extension to the Ujung Pangkah field. This will be the subject of appraisal drilling during the early part of the field development, probably in early 2004, so that any additional proven gas reserves can be accommodated within the existing core development scheme.
In addition, an extensive re-evaluation of the remaining exploration potential of the Pangkah PSC carried out in 2002. This has resulted in the remaining exploration prospects being ranked for drilling, with the first of these, the West Sidayu oil prospect, expected to be drilled before the end of 2003. Once the results of this well are known, the development options for the existing Sidayu oil field and the considerable volumes of oil previously found underlying the main Ujung Pangkah gas field, will be determined.
Dana Petroleum is a U.K.-based independent oil and gas companies. (*)