Premier: Natuna Sea Block A output up 6%
Friday, March 10 2017 - 01:27 AM WIB
Courtesy of Premier
British firm Premier Oil said that Natuna Sea Block A fields, offshore Natuna Island, outperformed last year delivering a robust production performance of 13.0 kboepd, up 6 percent on 2015.
The company said in a statement Thursday this was underpinned by an increased market share of 44 percent within GSA1 and strong Singapore demand for gas deliveries under GSA2.
?This, together with low operating costs of US$8/boe, resulted in the Indonesian business unit generating strong positive net cash flows for the Group,? the company said in the statement.
Net production from Indonesia in 2016 on a working interest basis increased to 14.3 kboepd (2015: 13.9 kboepd), with higher production from the Premier-operated Natuna Sea Block A fields offset, in part, by lower production from the non-operated Kakap fields. Operating efficiency remained high at over 90 per cent.
Premier sold an average of 237 BBtud (gross) (2015: 223 BBtud) from Natuna Sea Block A fields during 2016. Singapore demand for gas sold under GSA1 remained robust, averaging 297 BBtud (2015: 311 BBtud) during 2016. Premier?s Anoa and Pelikan fields delivered 132 BBtud, capturing 44 per cent (2015: 43 per cent) of GSA1 deliveries, above Natuna Sea Block A?s contractual share of 41 per cent. Natuna Sea Block A?s contractual share for 2017 has been increased to 47 per cent.
Gajah Baru and Naga delivered record production of 94 BBtud under GSA2, up 22 per cent on the prior year, representing 100 per cent nomination delivery by Premier. Gas deliveries from Gajah Baru and Naga under the Domestic Swap Agreement (DSA), which resumed in September following an extension of the DSA to end December 2016, averaged 11 BBtud (2015: 13 BBtud). The Gajah Baru compressor reconfiguration project, aimed at maximizing deliverability from the Gajah Baru, Pelikan and Naga fields, was successfully completed in December 2016 and will extend plateau production from these fields.
Gas sales from the non-operated Kakap field averaged 17 BBtud (2015: 23 BBtud) while gross liquids production was 2.7 kbopd (2015: 3.5 kbopd), reflecting natural decline from existing wells. Gross liquids production from the Anoa field was stable at 1.4 kbopd (2015: 1.4 kbopd), underpinned by successful well intervention work.
?Premier continues to benefit from a low cost base in Indonesia, as a result of an on-going cost reduction campaign,? the company said.
It added that based on current production levels, Natuna Sea Block A is well placed to deliver operating costs of around US$8/boe into the medium term.
The Natuna Sea Bock A PSC is 65 percent owned by Premier with the remaining 35 percent owned by Mitsui Oil Expl. Co.
Editing by Reiner Simanjuntak