Premier Oil to quit Aceh gas field
Wednesday, March 5 2014 - 04:34 AM WIB
UK oil and gas frim Premier Oil Plc said it was planning to sell its non-operating interest in Block A Aceh gas block in 2014.
This was revealed by the company in a report filed with the London Stock Exchange last week, but did not give details for the decision.
Premier has a 41.67 percent interest in the block, equal with operator IDX-listed PT Medco Energi Internasional Tbk. The remaining 16.66 percent is held by Japanese firm Japex.
Medco is currently in negotiation to supply 110MMCFD of gas under long term contract to fertilizer maker PT Pupuk Iskandar Muda (PIM) and some 15 MMCFD to state electricity firm PLN.
?All EPCI bids for the facilities are now in place and an in-principle agreement reached on a revised gas price with the end user and the Indonesian government,? Premier said.
Recent drilling success at Matang-1 exploration well has caused the joint venture to venture to consider the potential for alternative development scenarios, Premier added.
The Matang-1 exploration well on Block A Aceh reached total depth on 21 March 2013 and penetrated over 90 feet into a gas accumulation. The well was subsequently tested and flowed gas at commercial rates of 25 mmscfd. The gas is relatively sweet and lean compared to the gas found in the surrounding fields in Block A Aceh. The gross resource estimate for the Matang structure remains in line with the pre-drill estimate of 100 to 400 bcf. The joint venture is currently planning an appraisal well on Matang in 2015.
Editing by Reiner Simanjuntak