Hess to spend $1 billion to develop E. Java oil, gas block
Wednesday, January 17 2007 - 06:45 PM WIB
Hess Indonesia President and General Manager Colin Munro told petromindo.com in an interview that the field?s first phase development, which started in 2005, would begin to produce gas in March 2007. The gas will be supplied under 20-year contract at the rate of 100MMCFD to state electricity firm PLN?s Gresik 2,200-MW power plant..
The second phase development, which had just kicked off this year, would involve construction of facilities that would enable the block to produce 25,000 BPD of crude and condensate by the end of 2008 and LPG production facilities which would be able to extract some 6,000 barrels of LPG per day, he said.
Initially, the Ujung pangkah field is being developed with a single unmanned wellhead platform located offshore. Full development of the field would consist of four platform offshore and oil, gas and LPG processing facilities onshore.
Hess is planning to drill approximately 40 oil and gas wells in Ujung Pangkah 2007-2010.
Munro added that three exploratory wells will be drilled later this year as a result of seismic studies conducted last year, which is currently being processed.
Hess has 75 percent interest in Pangkah PSC, with the balance held by ConocoPhillips. (alex)