Ramba to double gas production from W. Java block
Monday, February 21 2011 - 07:27 AM WIB
The wells are expected to add at least 4 mmscfd in gas production, the company said, adding that currently total production at the Jatirarangon block stands at approximately 3.4 mmscfd of gas and 90 bopd.
The tender process for the drilling is scheduled to begin over the next few weeks.
The block?s gas offtaker PT Perusahaan Gas Negara (PGN) will also pay a one-time lump-sum payout of US$2.18 million to support Ramba?s development work towards raising gas production at the block, the company said.
The company has just secured price amendment for its gas, where purchase price for gas from the Jatirarangon will jump 70 percent to $4.332/mmbtu from 1 April 2011, up from US$2.55/mmbtu currently. The price will increase by a further 3 percent on an annual basis thereafter until 2014.
The Jatirarangon block has been in commercial gas production since October 2004.
The existing technical assistance contract (TAC) with state oil, gas company Pertamina to explore and produce oil and gas at the Jatirarangon is due to expire in May 2020.
Since March 2010, Ramba has held a 70 percent working interest in Jatirarangon block, through its wholly-owned subsidiary Ellipse Energy Jatirarangon Wahana Ltd, the operator of the Jatirarangon block. The other 30 percent working interest is owned by PT Wahana Sad Karya as a non-operator. (alex)