Premier Oil updates Indonesian ops
Thursday, August 27 2009 - 08:04 AM WIB
Production and development
Natuna Sea Block A (Premier 28.67%, operator)
In the first half of 2009, the Premier-operated Natuna Sea Block A sold an overall average of 142 billion British thermal units per day (BBtud) (gross) from its gas export facility, whilst the non-operated Kakap Block contributed a further 46 BBtud (gross).
Liquids production from the Block A Anoa field averaged 1,893 barrels of oil per day (bopd) (gross) and the Kakap field 4,621 bopd (gross). As a result of the strong production performance from the Anoa field being able to satisfy demand, plans to drill three further development wells in the second half of the year to maintain gas sales rates have been deferred to 2010.
Overall, net production from Indonesia in the first half amounted to 10,900 boepd (2008: 11,850 boepd).
Gajah Baru - Natuna Sea Block A (Premier 28.67%, operator)
Significant progress has been made on the Gajah Baru project, the first of three fields to be developed to supply additional gas to Singapore and Batam under three new Gas Sales Agreements (GSAs) signed in 2008 and reported previously.
A second tender for the EPCI contract was completed on 16 March 2009 with resultant gross cost reductions of approximately US$100 million. With further reductions expected in development drilling costs, total capital expenditure for the Gajah Baru project is now forecast to be US$196 million (net).
Maximum routine gas sales will be in the order of 140 million standard cubic feet per day (mmscfd) and recoverable reserves from the three fields are expected to exceed 500 billion cubic feet (bcf). Construction initiation meetings were held with PT Saipem and PT SMOE in June and long lead equipment orders are progressing as planned. First gas is expected by October 2011 in advance of the contractual obligation under the GSA with Sembgas.
Alur Siwah and Alur Rambong - North Sumatra Block A (Premier 41.67%) interest)
On the non-operated North Sumatra Block A, following approval of the Plan of Development for the Alur Siwah, Alur Rambong and Julu Rayeu gas fields in 2008, optimisation studies continued together with negotiation of fully termed agreements for use of the nearby facilities for transportation of gas and liquids.
Finalisation of the basis of design is expected in the third quarter and due to the delay in signature of the Production Sharing Contract (PSC) extension, the EPCI contract award is now targeted for early 2010.
Workover activity on the Tualang and Iee Tabeue oil fields on the block continued during the year to establish whether additional reserves are commercially recoverable. Work has been completed on four wells, including a well to be used for produced water disposal. Wireline logging, testing and workover of additional wells will continue through the third quarter.
Exploration and appraisal
Tuna Block (Premier Operator, 65% interest)
On the operated Tuna Block in Indonesia, plans have been updated following the success in Premier's Vietnam Block 07/03, immediately to the north. Interpretation of the 2,400km 2D survey has been encouraging and a contract has been signed for 850km2 3D seismic to be shot in the fourth quarter of 2009 before drilling wells in the third quarter of 2010.
Natuna Sea Block A (Premier 28.67%, operator)
On Natuna Sea Block A, a five-year exploration plan has been developed for the block and due to re-phasing of the development drilling programme, the Anoa Deep well will now be drilled in 2010.
Buton Block (Premier 30% interest)
On the non-operated Buton Block, the 250km 2D seismic survey begun in 2008 was completed mid-year; interpretation is under way and an exploration well is planned for the fourth quarter of 2010.
North Sumatra Block A (Premier 41.67%)
On North Sumatra Block A, further work to define prospects for drilling in 2010 and 2011 and appraisal of the Kuala Langsa discovery is ongoing. Joint study activity under three agreements with the Indonesian licensing authority, MIGAS, in the North Merak, East Asahan and East Bangkanai areas, is nearing completion. (end of edited excerpt)