Matrix to conduct re-entry drilling in N. Sumatra oil well to repair leak

Australian oil company Matrix Oil NL said on Tuesday it would conduct re-entry drilling at its L1 oil well in Langsa Offshore technical assistance contract (TAC) area in Malacca Strait, North Sumatra to remedy the leakage that occurred to resume full oil flow from the well.

L1 well had been temporarily shut down in December 2001 following the discovery of a leak of hydraulic fluid in the control line. The well was then re-opened on January 1st 2002, at a lower flow rate than its full production rate, to allow for further testing.

The well maintained a steady flow of approximately 2,500 barrels of oil per day during January 2002. However the leak has begun to increase significantly over recent weeks, resulting in a decision to shut down the well once again.

The company?s engineers finally decided to conduct re-entry drilling to prevent further leakage.

The company said tender documents for the drilling rig and integrated operating services are shortly to be released so that this work can be completed as soon and as efficiently as possible.

According to matrix, the re-entry of the L1 well is expected to be completed within 5 months, after which the well should resume production at an expected rate of 4,000 barrels of oil per day

Meanwhile, the company said that another well, L2, is continuing to flow at a rate of approximately 2,500 barrels of oil per day.

In addition, the company is planned to re-enter the H3 well at the same time, which will increase total production from the Langsa fields to approximately 9,000-10,000 barrels of oil per day.

Matrix, which has 90 percent of working interest in Langsa TAC, started flowing oil in November 2001. (alex)