Premier reports Indonesian operations results
Thursday, March 22 2007 - 09:59 AM WIB
Premier's core asset in Indonesia is its interest in the West Natuna Gas project, which supplies gas under a long-term gas sales contract to Singapore. This is held through equity interests in Natuna Sea Block A and the Kakap Production Sharing Contracts (PSCs).
In 2006, Premier-operated Block A sold an overall average of 130 billion British thermal units per day (BBtud) (gross) with a further 66 BBtud (gross) average sold from the non-operated Kakap fields under the same agreement. Oil production from Anoa averaged 2,581 barrels of oil per day (bopd) gross (2005: 3,023 bopd) with the reduction due to natural depletion of the oil reservoirs. Oil production from Kakap averaged 6,998 bopd gross (2005: 7,263 bopd).
The company said in the second half of 2006, an well was drilled to appraise an un-drilled potential oil reservoir in the central area of the Anoa field and encountered and evaluated a 67 feet oil column before being sidetracked to the planned gas development location for the well. Planning is now under way for the development of the oil discovery with a well expected to be drilled in the first half of 2007 which is expected to add initially up to 2,000 bopd (gross) to Anoa production, it said.
?Negotiations for further gas sales from Block A continue with prospective buyers in the region and we are targeting sales of gas from 2010 to the Singapore petrochemical sector. Discussions have also been held with PLN, the Indonesian national power company, to sell gas domestically to Batam. We expect to move to definitive gas sales agreements on these projects during the second half of 2007,? the company said.
The 2006 Indonesia exploration drilling campaign resulted in a 100 per cent success rate with a gas discovery in Macan Tutul-1 and the discovery and testing of oil and condensate rich gas at Lembu Peteng-1. Further exploration and appraisal wells on the trend are planned for 2007 to establish the significance and development potential of this area and technical studies were also carried out across other areas on Block A to identify additional potential drilling targets for the 2007 drilling campaign, the company said.
Apart from Natuna assets, Premier also have stake in North Sumatra Block A PSC in Aceh, which has certified reserves of over 650 BCF and Buton exploration block in South East Sulawesi. (alex)