Premier Oil sees first gas from N. Sumatra Block A in 2010
Thursday, July 20 2006 - 03:15 AM WIB
UK-based oil firm Premier Oil plc expects that the North Sumatra Block A will start natural gas production in 2010.
Premier, along with its partners Medco Energi and Japex, acquired a 50 percent working interest in the block from ExxonMobil in March. The block is operated by ConocoPhillips with 50 percent interest.
According to Premier, the Block A contains three undeveloped discoveries, which in total are certified as holding over 650 billion cubic feet (BCF) gross of proved and probable reserves (110 BCF net to Premier).
?Premier anticipates that development costs for the three areas will be about US$400 million gross,? the company said in a statement on Wednesday.
Premier also said the gas reserves would be developed to supply PT Pupuk Iskandar Muda (PIM), which operates two fertilizers plants located close to the Arun LNG facility.
The company added that around 20 prospects have been identified in the block with total prognosed unrisked reserves of 1.5 trillion cubic feet (TCF) gross. The giant Kuala Langsa field is located at the Eastern edge of the block and contains 10 TCF with high CO2 content. (Robert)