Premier updates Indonesian operations
Thursday, March 25 2010 - 07:06 PM WIB
Production and Development
During 2009, the Premier-operated Natuna Sea Block A in Indonesia sold an overall average of 153 billion British thermal units per day (BBtud) (gross) from its gas export facility (up 8 per cent on 2008), whilst the non-operated Kakap Block contributed a further 42 BBtud (gross). Liquids production from the Block A Anoa field averaged 1,920 barrels of oil per day (bopd) (gross) and the Kakap fields 3,540 bopd (gross). Overall, net production from Indonesia amounted to 11,050 boepd (2008: 11,700 boepd) on a working interest basis.
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 Engineering, Procurement, Construction and Installation (EPCI) contract was completed on 16 March 2009 with resultant gross costs savings of approximately US$100 million. Total capital expenditure for the Gajah Baru project is forecast at around US$700 million (gross). Maximum routine gas sales will be in the order of 140 million standard cubic feet per day (mmscfd) and recoverable reserves from the three new fields are expected to be 500 billion cubic feet (bcf). Fabrication of both the wellhead platform jacket and deck continue in Batam. The project was 33 per cent complete at year-end for the construction phase, slightly ahead of schedule. Development well drilling is scheduled to commence in October 2010 and the project remains on track to deliver first gas on schedule in October 2011.
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, Front End Engineering Design (FEED) studies were completed in 2009 and work continues on optimising the project prior to EPCI bids. Negotiation of fully termed agreements for use of ExxonMobil facilities for transportation of gas and liquids continued. However, the Ministerial Decree relating to the PSC extension remains unsigned; the delay is impacting the project schedule with first gas scheduled for 2012 from Alur Rambong and 2013 from Alur Siwah.
Exploration
On the Premier-operated Tuna Block, plans have been updated following the success in Premier's Vietnam Block 07/03 immediately to the north in the Nam Con Son Basin. Following interpretation of the 2,400km 2D, an 850km2 3D seismic survey was acquired in September 2009. Interpretation of this survey is ongoing. Prospect selection will follow, ahead of drilling two exploration wells in 2010.
On Natuna Sea Block A, a five-year exploration plan has been developed for the block, and due to re-phasing of the nearby development drilling programme, the Anoa Deep exploration well will now be drilled in 2011.
Elsewhere, on the Japex-operated Buton Block, the 250km 2D seismic survey begun in 2008 was completed by mid-year. Prospect maturation is currently under way and a well is planned for the fourth quarter of 2010. On the Medco-operated North Sumatra Block A, further work to define prospects for drilling in 2011 is ongoing.
Premier continues to review opportunities to expand its acreage position in Indonesia and joint study activities under three agreements with Migas, the Indonesian government authority, in North Merak (offshore Java), East Asahan (onshore Sumatra) and East Bangkanai (onshore Kalimantan) were completed in 2009. The East Bangkanai review has justified follow-up work to be completed in early 2010.(end of excerpt)