Premier updates Indonesian ops
Accelerates Pelikan and Naga fields development
Thursday, August 26 2010 - 02:01 PM WIB
Production and development
During the first six months of 2010, the Premier-operated Natuna Sea Block A in Indonesia sold an overall average of 150 billion British thermal units per day (BBtud) (gross) from its gas export facility (up 6 per cent from first half 2009), whilst the non-operated Kakap Block contributed a further 54 BBtud (gross). Liquids production from the Block A Anoa field averaged 1,700 barrels of oil per day (bopd) (gross) and the Kakap fields 2,900 bopd (gross). Overall, net production from Indonesia amounted to 11,300 boepd (2009: 10,900 boepd) on a working interest basis.
Significant progress continues to be made on the Gajah Baru project, the first of a number of 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. Fabrication of both the wellhead platform and the central processing platform continue in Batam at two separate fabrication yards. The overall Engineering, Procurement, Construction and Installation (EPCI) contract was over 63 per cent complete at the end of July. The wellhead platform is in the process of being installed, allowing the start of development well drilling in September 2010. The project remains on track to deliver first gas on schedule in October 2011.
Development work on the Pelikan and Naga fields has been accelerated in order to be able to take on additional GSA market share from 2014. First gas is scheduled for 2013 and 2014 respectively instead of the previously planned 2015 and 2016. The project has passed through the concept selection gate and final project sanction is expected in 2011. The Pelikan and Naga fields will be tied-in to the existing West Natuna Transportation System.
On the non-operated North Sumatra Block A work continues on optimising the project and on the transportation studies prior to the issuing of EPCI tender documents. Negotiation of fully-termed agreements for use of third party facilities for transportation of gas and liquids continued, with strong support from the relevant authorities. The provincial government in Aceh has indicated its support and approval for the process of extending the North Sumatra Block A PSC and has signed a Memorandum of Agreement to this effect with the operator. The Indonesian Ministry responsible for such matters, MIGAS, is planning to finalise the PSC extension approval during the third quarter of this year. The delayed approval has impacted the project timetable with first gas now scheduled for early 2013.
Exploration and appraisal
On the Premier-operated Tuna Block, significant progress has been made in preparation for the drilling programme later this year. Processing and interpretation of the 850km2 3D seismic survey was completed. Seismic attribute analysis has also highlighted several prospects with a seismic response consistent with that observed in the hydrocarbon-bearing reservoirs of the C? Rồng Đo well drilled by Premier in the Vietnamese Block 07/03, immediately to the north of the Tuna Block. Site survey acquisition and processing was carried out safely and successfully over three prospects on the Tuna Block. Final plans are complete for drilling the Gajah Laut Utara and Belut Laut prospects in the fourth quarter of 2010.
On Natuna Sea Block A, given expectations of increasing demand for gas in the area, a five‑year exploration plan has been developed for the block, with a block-wide prospect inventory review in progress to refine the remaining risked resource potential. Planning is in progress for two exploration wells on the block in the second quarter of 2011: Anoa Deep and Biawak Besar.
Elsewhere, on the Buton Block, technical studies were completed with the identification of Benteng-1 as the drilling candidate for the fourth quarter of 2010. Onshore site preparation is in progress. (end of edited excerpt)