Premier Oil : First gas from West Natuna
Monday, January 15 2001 - 02:00 PM WIB
Premier announce the commencement of deliveries of gas to Singapore from the West Natuna Gas Project located offshore Indonesia.
This is six months ahead of the main contractual start for sales in July 2001 and is a milestone in the development of Premier's Far East gas business.
Gas is being produced from the Premier operated Anoa gas field located in Natuna Sea Block A Production Sharing Contract Area (PSC) and from fields in the Kakap PSC in which Premier also has an interest. The PSCs are located
adjacent to each other some 500 km north east of Singapore in the West Natuna Sea.
Both PSC groups have entered into arrangements to share production on an equal basis until the main contract starts in July.
Gas sales to Singapore's SembCorp Gas will continue for over twenty-two years. The gas will be sold on to various end users including SUT Co-Gen, Tuas Power and Exxon Chemicals.
Initial deliveries are expected to build rapidly over the next few months to over 150 million standard cubic feet of gas per day (mmscfd). Thereafter gas sales volumes are expected to reach a plateau level of around 325 mmscfd.
Over the life of the contract 2.5 trillion cubic feet of gas will be produced generating in excess of $8bn in gross revenues (Premier has the largest stake at 28%). (*)