Salamander updates Indonesian ops
Thursday, August 26 2010 - 05:56 PM WIB
Production/development
Kambuna gas and condensate field, Glagah/Kambuna TAC, Offshore North Sumatra (50%, Operator)
Gross production from the Kambuna field averaged 7,800 boepd during the first half of 2010, comprising 68% gas and 32% liquids. As detailed in the full year results for 2009 released in March 2010, nominations, and therefore production, were at a reduced level in the first quarter until the buyer (PLN) brought one of its gas turbines at the Belawan power plant back on line. Production volumes were ramped up towards full Daily Contract Quantity (DCQ) volumes, but reduced again in order that the gas transporter (PGN) could carry out maintenance on the pipeline delivering Kambuna gas to the power plant. These issues have now been resolved and the field has been producing consistently at full DCQ volumes since May 2010.
Work continued throughout the period on completion of the permanent onshore receiving facilities at Pangkalan Brandan. These are now expected to be completed, commissioned and fully operational early in the fourth quarter of 2010.
As announced on 4 August 2010 the Group has revised its reserves estimate for the Kambuna field. It has reduced its net entitlement proven and probable reserves by 1.8 MMboe (7.5 MMboe on a net working interest basis) as a result of observing a faster than anticipated pressure decline in the Kambuna 3 well. Installation of compression facilities will be brought forward to 2011 to maintain the productive capacity of the field. Near term production volumes and cash flow will not be impacted.
Offshore Northwest Java PSC ('ONWJ')/Southeast Sumatra PSC ('SES') (5%)
Production from these licences has continued with SES producing in line with expectations and ONWJ significantly exceeding expectations. The gross average daily production was 62,700 boepd from ONWJ and 59,000 boepd from SES during the first half of the year. Infill drilling programmes have continued across both of these licences. In the ONWJ PSC, the development plan for the APNE gas field has been approved by the regulator and work is expected to commence later in 2010.
South Sembakung Development, Simenggaris JOB-PSC (21.5%)
On the South Sembakung gas field development, the operator has progressed land acquisition for drilling pads and the site for gas processing facilities. 2D seismic is planned in the latter part of 2010 on satellite prospects to the South Sembakung field and the drilling of development wells on the field itself is due to start in early 2011.
Exploration and appraisal
Bontang PSC (90%, Operator)
Preparations for the drilling of the Angklung-1 exploration well in the Bontang PSC, Kutei basin, are at an advanced stage and the well is expected to spud in the third quarter. The drilling of the well has been delayed due to a lengthy tendering process and limited availability of a suitable floating rig. The Group has now signed a letter of intent and has completed contract negotiations with Japan Drilling Company for the Hakuryu 5 semi-submersiblerig, currently docked in Singapore. The necessary importation paperwork is being processed and the rig is expected to commence the tow to location during September.
The Angklung prospect is a fault bounded closure with sandstone reservoir targets in the Middle Miocene. The unrisked prospective resources are estimated to be of the order of 125 MMboe with chance of success on the prospect estimated to be 24%. Multiple follow-on prospects have been identified from the 3D seismic data with resource potential in excess of 500 MMboe. Further drilling is planned in the Bontang PSC in 2011.
In March 2010 the Group increased its equity interest in the Bontang PSC to 90%.
On the near shore Tutung gas condensate discovery, seismic reprocessing and remapping have been completed and a location for the Tutung Alpha-3 appraisal well has been chosen. The location has the benefit that it is onshore and can provide a site for production facilities in the event of success. Tendering is underway and it is now expected that TA-3 will be drilled in 1Q 2011.
Kutai PSC (23.4%)
The Kutai PSC is comprised of first phase relinquishments around a number of giant fields in the Mahakam delta. The operator has identified the Dambus prospect as the first for drilling and it is expected to spud imminently. The Group views Dambus as having gross prospective resources of 180 MMboe and a 20% chance of success. The Dambus well will be followed by Marindan which has gross unrisked prospective resource of 900 Bcf and a 15% chance of success.
Bengara PSC (41.7%)
The operator has advised that the South Sebuku-2 well will spud January 2011 as a result of delays in obtaining the necessary permits. South Sebuku is a gas discovery located 15 kilometres away from the South Sembakung gas field development. If the South Sebuku-2 appraisal well is successful then it is anticipated that the discovery will be developed via a tie in to the South Sembakung facilities. The Group increased its net equity in the Bengara PSC from 25% to 41.7%. (end of excerpt)