Premier Oil updates Indonesian ops

The following is an edited excerpt from independent oil, gas firm Premier Oil Plc?s Interim Management Statement for the period to 19th November 2009, released on Thursday.(ed)

Natuna Sea Block A (Premier 28.67%, operator)
Gas demand from Sembgas in Singapore has remained strong and, combined with good performance from the Premier-operated Anoa field, has resulted in an estimated 5% increase in production on the first half of the year. Estimated annual production from the Anoa field (gross) is 8.6 kboepd (2008: 8.4 kboepd).

Development Projects-Gajah Baru
Good progress continues to be made on the Gajah Baru project. This is the first of three fields to be developed to supply additional gas to Singapore and Batam under new Gas Sales Agreements (GSAs) signed in 2008. Overall progress on the Engineering, Procurement, Construction and Installation (EPCI) contract, signed in May 2009, has now reached 30% and remains on schedule.

Fabrication has commenced in Batam both on the central process facility at the PT SMOE yard and also on the wellhead platform at the Nippon Steel yard (as sub-contractor).

Tendering for the jack-up drilling rig for the initial five wells, along with an infill drilling programme on Anoa, is due to commence imminently. A tender is underway for the additional facilities required at the Onshore Receiving Facility in Singapore. Development drilling is planned to start in October 2010 after installation of the wellhead platform. First gas is expected by October 2011.

Kakap field (Premier 18.75% interest)
The Kakap field has seen poorer performance with estimated production for the year of 2.4 kboepd (2008: 3.8 kboepd). Liquids are currently being re-injected whilst the FPSO is being replaced. This operation is expected to be completed before the end of November.

North Sumatra Block A (Premier 41.67% interest)
On the non-operated North Sumatra Block A, the basis of design for the gas development has been finalised with work now focused on finalising documentation for the EPCI tenders and completing negotiations for the use of nearby facilities for transportation of gas and liquids. Due to further delays in the signing of the Production Sharing Contract (PSC) Extension, award of major contracts for the project is now expected in mid-2010.

Tuna Block (Premier Operator, 65% interest)
An 850 km2 3D seismic survey was shot over the Tuna Block in September and processing is expected to be completed in early January 2010. Two wells are planned for later in 2010. (end of excerpt)