Mirach reopens 14 old wells in KM oil field
Saturday, August 13 2016 - 04:59 AM WIB
SGX-listed Mirach Energy said that as per the second quarter of this year (2Q2016), 14 old wells were reopened at the Kampung Minyak (KM) oil field in South Sumatra, and the focus remain on ensuring improving well servicing, with no plans to drill new wells given the current oil price environment.
?So far, the reopening programs proved to have oil in those wells; but in order to enable them to continue producing and/or generate higher production volume, water injection would be needed,? the company said in a statement Friday.
The statement explained that the Pilot Water Flood program was into its final phase and originally set for commissioning by 2Q2016. This is however still awaiting final approval from Indonesian state-owned oil and gas firm PT Pertamina to commence. Thereafter, it shall be put on an evaluation period for 6 months regarding its production output and its capacities.
Meanwhile, the group remains engaged in consolidating the KM Field operations so as to contain its operational costs and to enhance its production capacity. There are preparations for a 10 years program to develop the KM oil field, which would then need to be aligned with the opportune time for an effective and efficient ?take-off? when oil prices resume to an acceptable level.
Mirach Energy is licensed to produce oil at the Kampung Minyak Field in South Sumatra, for 15 years under a KSO (Joint Operation Agreement) with Indonesia?s state-owned oil and gas firm PT Pertamina. The field covers 45 square kilometers with 65 million barrels of OOIP mainly located in the reservoir formation between 200-500 meters. The company is partnering with one of the most successful EOR firms in Asia, Daqing Enterprise International, a subsidiary of PetroChina Daqing Oilfield Company Limited, to rejuvenate the field and enhance production rates.
Editing by Reiner Simanjuntak