Medco targets higher oil, gas output this year
Monday, April 3 2017 - 01:28 PM WIB
The company said in a statement late Monday that it has set oil and gas production guidance for 2017 in the range of 75-80 mboepd, or 13.64-21.21 percent higher than last year?s output of 66 mboepd.
Medco said that unit cash costs will remain below $10 per boe in 2018, and through 2020. Last year, unit cash costs declined to $8.8 per boe from $12.3 per boe in 2015.
Elsewhere, Medco said that it plans drilling program on the South Natuna Sea Block B this year to access untapped hydrocarbon resources. Medco through subsidiary PT Medco E&P Natuna currently holds a 40 percent interest in the block as operator. Inpex Corp which owns a 35 percent interest in the block announced on March 27 it plans to sell the entire stake in the block to PT Medco Daya Sentosa, a subsidiary of Medco. Chevron holds the remaining 25 percent interest.
South Natuna Sea Block B is located 1,200 km north of Jakarta, Indonesia in the Natuna Sea where the water depth is approximately 50-55 meters. The average production rate for the Block for the year 2016 was approximately 20,000bbl/d of crude oil, 197MMscf/d of natural sales gas and 6,000bbl/d of LPG, Inpex said in the March 27 statement.
Medco also said in the statement on Monday that the Aceh gas development will continue with drilling program in the second quarter of this year. The company last year, consolidated its Block A PSC interest in Aceh Province to 85 percent by acquiring 16.67 percent interst from Japex and 26.67 percent from KrisEnergy .
The company said construction at Block A PSC is on budget and on track with progress reaching over 35 percent. The block is expected to come on-stream in the first quarter of 2018 with gas from the block to be channeled to state owned oil and gas firm PT Pertamina.
Editing by Reiner Simanjuntak