PetroChina investing $372m to develop Jabung Block
Friday, September 14 2007 - 01:39 AM WIB
Chinese oil firm PetroChina International Jabung Ltd is investing US$372 million this year to maintain production at Jabung Block onshore Jambi or a 40 percent increase compared to last year’s figure of US$265 million.
PetroChina International Companies in Indonesia’s strategy and business manager Yin Xiaohua said in Jakarta Thursday that the amount included $128 million for capital investment and $244 for non-capital investment.
He said that the funds were being used for drilling five new exploration wells, building additional production facilities to maintain the output level at the block, which is the primary supplier of natural gas to Singapore
The block's gas production target for 2007 is set at 101 million cubic feet per day (MMSCFD), which is a slight increase from 2006’s figure of 100 MMSCFD.
The block is also expected to produce 13,008 barrels per day (bpd) of oil, 8,874 bpd of condensate, and liquefied petroleum gas (LPG) amounting to 13,115 barrels oil equivalent per day (boepd). “Jabung Block's total production for 2007 is expected to reach an average 51,100 boepd,” said Xiaohua.
According to Xiaohua, the block's production for 2006 totaled 51,200 boepd, which was made up of 100 MMSCFD of natural gas, 12,803 bpd of oil, 9.344 bpd of condensate, and 12,918 boepd of LPG.
Xiaohua explained that besides Singapore, the natural gas output from the block had also been supplied to a power plant owned by Tanjung Jabung Power and Tanjung Jabung administration since mid 2006, with the contract volume of 2.74 trillion british thermal unit (TBTU) for five years.
He added that last year, the firm had successfully developed 19 wells and carried out 15 workovers. The average cost is US$2.5 million for exploration well and $1.9 million for development well.
PetroChina and Malaysian firm Petronas have an equal interest of 27.85 percent in the block, while PP Oil&Gas, an equal partnership of PetroChina and Petronas, has another 30 percent, with the remaining 14.28 percent held by state oil and gas company Pertamina. (godang)