Premier Oil updates Indonesian ops
Thursday, August 28 2008 - 07:47 AM WIB
Production and development
In the first half of 2008, the Premier-operated Natuna Sea Block A in Indonesia sold an overall average of 143 billion British thermal units per day (BBtud) (gross) from its gas export facility, while the non-operated Kakap field contributed a further 67 BBtud (gross). Liquids production from Anoa averaged 2,208 barrels of oil per day (bopd) (gross) and from Kakap 6,708 bopd (gross). Overall, net production from Indonesia amounted to 11,850 boepd (2007: 11,848 boepd).
Significant progress has been made in commercialising Natuna Sea Block A gas reserves not already covered by gas contracts. Following the Heads of Agreement, signed with three different customers (Sembcorp Gas Pte Ltd (Sembgas) in Singapore, and PT Perusahaan Listrik Negara (PLN) and PT Universal Batam Energy (UBE) in Batam, Indonesia), full Gas Sales Agreements were signed in April 2008. The gas transportation agreement required for delivery to Sembgas is expected to be concluded in the third quarter of 2008 and the associated agreements for the Batam sales in the fourth quarter of 2008. The Government of Indonesia has approved the Gas Sales Agreements and also the Plan of Development for three fields (Gajah Baru, Naga and Iguana), which are required to satisfy the Gas Sales Agreements. The order has been placed for wellhead platform steel. The first field to be developed will be Gajah Baru, at a cost of around US$500 million and with maximum routine gas sales in the order of 140 million standard cubic feet per day (mmscfd). The reserves in the three fields exceed 500 billion cubic feet (bcf).
On North Sumatra Block A, commercialisation of the Alur Siwah, Alur Rambong and Julu Rayeu fields continued with signature, in April, of a second Gas Sales Agreement with PLN, the state electricity company, for the long-term supply of 15 BBtud of gas. Approval of the Plan of Development for the fields was received in January and Front End Engineering Design (FEED) studies commenced at the end of the period. Detailed negotiations are under way for a Facilities Sharing Agreement for the use of ExxonMobil's gas transportation system. Refinement of the Subsurface Development Plan is ongoing to finalise well locations for the first phase of development drilling, which is scheduled to commence at the end of 2009.
Exploration and appraisal
In Indonesia, exploration studies are in progress to mature the existing prospect inventory on Natuna Sea Block A as well as assess other potential opportunities. A reprocessing project covering 3,000km of 2D seismic data is under way, along with regional and focused geological studies.
The operator commenced a 265km 2D seismic acquisition programme on the Buton block in January. The acquisition programme will take nine months to complete because of challenging terrain and the remote location. A processing contract for the data has been awarded and it is expected that the initial data will be available from September. An exploration well is planned for 2010.
Premier completed the first phase of technical evaluation across the Tuna block in parallel with the ongoing work programme in Premier's Vietnam Block 07/03 immediately to the north. Leads have been identified across the block at multiple levels and in a number of play configurations. A contract has been awarded to Fugro for the acquisition of 2,400km of 2D seismic data across the block, expected to commence in August, that is focused on maturing and high grading the current prospect inventory. Planning is under way for two wells to be drilled on the Tuna block in late 2009, subject to rig availability.
In Indonesia, in partnership with government authorities (MIGAS), Premier plans to participate in studies on three blocks located in North Sumatra, East Kalimantan and the Java Sea. (end of excerpt)