PoD approved for North Klalin field in Kepala Burung PSC

By Ruli Setiawan

SGX-listed RH Petrogas Limited announced on Thursday that the Plan of Development (POD) for the North Klalin gas and condensate field in the Kepala Burung PSC, also known as Basin PSC, in West Papua has been approved by SKK Migas.

The PoD was submitted following the discovery made by the North Klalin- 1 well in 2011 and the successful appraisal by the North Klalin- 2 and 3 wells in subsequent years. North Klalin-1, 2 and 3 wells have since been put on production.

The PoD program involves the drilling of four new development wells and the construction of flowlines tying back to existing production facilities within the Basin block. The additional gas production from the North Klalin field will be used to supplement internal fuel requirement for operation as well as to meet additional demand for gas in the local markets and to support the economic development around the Sorong area in West Papua.

Francis Chang, Chief Executive Officer, said: ?With the POD approval, the North Klalin field can now move into full field development. In view of the steep drop in oil prices which hit the oil and gas industry in recent months, we are currently discussing with our partners on the best strategy to implement the POD. We believe that given the current environment where many E&P companies are expected to cut back or defer on their capital expenditures, there may be opportunities for us to lower the cost of development for North Klalin should there be an easing of demand for drilling and other contracting services in the region.?

The company through its subsidiaries Petrogas (Basin) Limited and RHP Salawati Basin B.V. has an aggregate 60 percent working interest in the Basin PSC. The other partners are PetroChina International (Bermuda) Ltd. (30 percent) and PT Pertamina Hulu Energi (10 percent). The consortium, as contractor of Indonesian government operating under the supervision of SKK Migas, has actively explored and produced oil and gas in the working area.

Editing by Johannes Simbolon