Premier updates Indonesian ops
Friday, January 16 2009 - 12:45 AM WIB
CURRENT TRADING OPERATIONS
| Estimated group production by field | 2008 | 2007 | ||
| FIELD | Oil (kbopd) | Gas (mmscfd) | Total (kboepd) | Total (kboepd) |
| Anoa | 0.6 | 39.9 | 8.4 | 8.2 |
| Kakap | 1.1 | 10.2 | 3.3 | 3.8 |
| Total Indonesia | 1.7 | 50.1 | 11.7 | 12.0 |
| Average gas prices for our principal gas producing areas for 2008 | ||
| $/MCF | ?2008 | ?2007 |
| Indonesia | 15.2 | 11.3 |
DEVELOPMENT ASSETS
As previously announced, 2008 saw significant progress in all of our major development projects in terms of project approvals, both at partner and government levels, gas and transportation agreements and key supplier contracts. Completion of the three projects in Indonesia and Vietnam will increase Premier's production beyond its stated target of 50,000 bopd.
Detailed development plans for all of our major projects have been under review in the light of the significant volatility in oil and gas commodity prices and the tight financing environment seen over the last six months. We have recently completed various tender processes and while raw material and supplier service costs, particularly rig rates, are generally declining, this is not yet the case in all areas. In addition, some of our contractors are seeing delays in securing their own financing requirements.
Gajah Baru - Natuna Sea Block A (Premier 28.67%, operator)
The tender process for the EPCI contract for the Gajah Baru platforms has been completed and the contract award is awaiting partner and BPMigas approval. The market for platform fabrication and installation in SE Asia has remained tight and these platforms will be more expensive than forecast and will take slightly longer to build than planned. However rig rates have reduced and development drilling costs have been lowered. The net effect of all these changes on total capex for the project is an estimated increase of 10-15% and a delay in the first gas date from very late in 2010 to mid-2011. This is still in advance of the contractual obligation under GSA2 with the gas buyer in Singapore. Signature of the transportation agreements which support the gas sales agreements with customers on Batam Island, Indonesia (GSA3 and GSA4) is targeted for later in January.
North Sumatra (Premier 41.67%)
The PSC for Block A in North Sumatra is being amended in line with the (new) standard PSC for Indonesia and is expected to be signed shortly. To compensate for changes in the PSC terms an amendment to the existing gas sales agreement will also be signed. The revised gas sales price will have an increased floor of $6.50/MMBtu. The net effect of these changes is neutral in net present value terms. It is expected that following the revisions to these contracts, the development project will proceed as previously advised with first gas from the Alur Rambong field in 2010 and the Alur Siwah field in 2011.(end of excerpt)
EXPLORATION
| 2009 Firm Programme | ||||
| Country | Well | Estimated Timing | License Interest | Prospect Size |
| Indonesia | Anoa-Deep | 2Q | 29% | 150 bcf |