Premier Oil?s output slightly down in Indonesia

By Nellawati

British oil firm Premier Oil?s net production in Indonesia reached 14,100 barrels of oil equivalent per day (boepd) in the first six months of the year, slightly down from 14,700 boepd in the corresponding period of last year.

Providing details in its first-half financial report on Thursday, the firm said the Natuna Sea Block A block operated by the firm sold an average of 225 Billion British thermal unit per day (BBtud) of gas (gross) in the first semester of the year, compared with 231 BBtud in the corresponding period of last year, from its gas export facilities on Anoa (144 BBtud) and Gajah Baru (81 BBtud).

The non-operated Kakap Block contributed gas production of a further 34 BBtud (gross) (2012 1H: 33 BBtud) during the first half. Gross liquids production from the Block A Anoa field averaged 2,000 barrels of oil per day (bopd) (2012 1H: 2,600 bopd) and 3,700 bopd from Kakap (2012 1H: 4,000 bopd).

?Overall, net production from Indonesia in the first six months was 14,100 boepd (2012 1H 14,700 boepd), on a working interest basis,? it said.

The Anoa field continued to exceed its 36.9 per cent contractual share of GSA1, delivering around 44 percent year to date. The Anoa Phase 4 additional compression project has now been completed and field production resumed on 14 August. This project will result in an additional 200 bcf of reserves being delivered from the Anoa field into Singapore. A substantial proportion of Anoa's contractual commitments under GSA1 was covered during the Anoa Phase 4 shutdown by the nearby Gajah Baru field, which consistently achieved record production rates of in excess of 200 BBtud.

Good progress was made during the first half on the Pelikan and Naga gas projects. The two gas fields, which contain 150 bcf of reserves and will maintain the profiles of GSA1 and GSA2, will be tied into the Gajah Baru facilities. Onshore fabrication of both the Pelikan and Naga wellhead platforms is nearing completion for load out and installation in the third quarter of 2013. The planning for the development drilling campaign is also far advanced with the rig contract awarded. Drilling is planned to begin on the Pelikan platform wells after the monsoon season in the first quarter of 2014, followed by the Naga wells. First gas from both fields is expected in the second half of 2014.

On the non-operated Block A Aceh, work continued on the gas development project. All engineering, procurement, construction and installation (EPCI) bids for the facilities have been received and negotiations on a revised gas price with the end user and the Indonesian Government are nearing completion. However, the success of the Matang-1 exploration well in April has enabled the joint venture to consider the potential for an alternative development scenario based on early production from Matang. Planning of an appraisal well on the Matang discovery in line with alternative block development plans has commenced and an agreement on the preferred development plan is expected in the fourth quarter of this year.

Editing by Johannes Simbolon