E. Java's Ujung Pangkah on track to deliver first gas 2005
Thursday, April 1 2004 - 01:30 AM WIB
In its preliminary results reports, the company said front-end engineering and design studies have been completed and the subsurface development plan agreed. The development will initially feature 6 production wells drilled from a minimum facility offshore wellhead platform with export via a 16? pipeline to an onshore gas processing facility at Gresik.
Dana said initial supply rate would be 100 MMCFD.
?Negotiations on gas sales from the field have taken longer than expected to conclude due to the complexities of the Indonesian gas market, however, principal terms are now agreed with PLN, the regional electricity utility, and final execution of a Gas Supply Agreement should follow,? said the company.
In parallel with the development, the company said two appraisal wells are being drilled to look for possible northern and western extensions of the proven Ujung Pangkah gas accumulation. The ?Ocean Sovereign? jack-up rig is contracted to drill these wells during April and May 2004. This additional gas is interpreted to be present from the transition zone seismic survey acquired in 2002.
?If successful, these appraisal wells could add substantial new gas reserves to the current ?core area? volume of 478 BCF. They will also provide valuable geological information ahead of finalizing development well locations. Should the accumulation prove to be larger, the facilities at Ujung Pangkah will be extended to include two further satellite wellhead platforms. Commercial provision has been made within the Gas Supply Agreement to accommodate the additional reserves and thus allow an increase in plateau production rate to 150 MMCFD.?
Further well locations are being considered to better define the oil potential in the Pangkah area, said Dana. In particular, a new well or a sidetrack of one of the appraisal wells could be used to test the productivity of the relatively thin, yet aerially extensive oil leg underlying Ujung Pangkah gas field. A flow test of the oil zone could determine whether a sufficiently high recovery factor can be achieved to allow commercial development of the estimated 450 million barrels of oil-in-place, The Company reported.
Dana has 12 percent working interest in Pangkah PSC, while operator Amerada Hess has 66 percent interest. ConocoPhillips has the remaining 22 percent. (alex)