Premier Oil?s H1 output slightly lower

British independent oil firm Premier Oil Plc has announced that its production from Indonesia amounted to 11,644 boepd in the first half of the year, compared to 11,766 boepd in the corresponding period of 2005.

Anoa and Kakap fields contributed 7,957 boepd (down from 8,156 boepd in 2005) and 3,687 boepd (slightly lower compared to 3,610 boepd in 2005) respectively, the firm said in a statement on Monday.

In the first half of 2006, the firm said, its operated Natuna Sea Block A sold an overall average of 130 billion British thermal units per day (Bbtud) (gross) from its gas export facility while its non-operated Kakap field contributed a further 70 BBtud (gross). Oil production from Anoa, the only field now in production in Block A, averaged 2,816 barrels of oil per day (bopd) (gross) and from Kakap averaged 7,095 bopd (gross).

Another field in Block A called West Lobe is now in construction phase. The firm said the West Lobe wellhead platform was completed slightly ahead of schedule on 18 May 2006. The jacket, deck and pipeline were installed and hooked up during April and May. Commissioning of the hydrocarbon systems was accomplished using gas from the AGX platform. Drilling is now under way with tie-in of the development wells scheduled for completion at the end of the year.

Premier operates the Natuna Sea Block A with a 28.67 percent interest. The other partners in the block are Kufpec (33.33 percent), Amerada Hess (23 percent) and Petronas (15 percent).

The firm said negotiations continued over the sale of further gas from block A with prospective buyers in Singapore.

?We currently assess Singapore to be the optimal market for new gas sales where new petrochemical plants are planned. We also maintain a watching brief over other possible markets on the Indonesian island of Batam, ?the company said.

The Macan Tutul-1 and Lembu Peteng-1 operated exploration wells in Natuna Sea block A were successfully drilled in the first quarter of 2006. Both discovered hydrocarbons and are now the subject of appraisal and development studies.

Recent technical work has been focused on finalizing the well program for the second half 2006 development and appraisal campaign, and preparing for the 2007 drilling campaign. In the period to year-end, four development wells will be drilled on the West Lobe platform, and an appraisal well is planned to follow up the successful Lembu Peteng-1 exploration well.

In preparation for the 2007 campaign, the company said, work has continued in maturing the Tengilling-1 exploration prospect which is located nearby the Anoa producing facilities, and finalizing the Gajah Puteri-3 well which will appraise the Ganesha fault block on the Gajah Puteri field. The Gajah Puteri field is located south of the Lembu Peteng-1 discovery and may present a future combined development opportunity.

Aside from Natuna Sea asset, Premier also has a stake in North Sumatra Block A onshore Aceh. In April 2006, together with partners Medco and Japex, Premier acquired a 50 percent working interest (Premier share 16.7 per cent) in the block, which has undeveloped discoveries certified as holding over 650 billion cubic feet (bcf) gross of proved and probable reserves.

?Gas sales negotiations and development studies are under way,? the firm said. (Bodega)