Sanga-Sanga exceeds oil target during Q1

By Godang Sitompul

Sanga-sanga Block in East Kalimantan during the period of January until March 14 this year has produced oil at an average rate of 15,000 bpd or 108 percent from the target stated on working plan and budget (WP&B) at 14,000 bpd, while its natural gas production reached 386,5 mmscfd or 97,5 percent from the target of 396,5 mmscfd.

?Its WP&B 2013 is US$534.5 million, of which $302 million for exploration and development, $214 million for production, and $18.5 million for general and administration costs,? upstream authority SKK Migas Planning Deputy Ausie Gautama said after a meeting with production sharing contractors in Balikpapan, East Kalimantan, on Thursday.

Sanga-sanga production sharing contract (PSC) is operated by Virginia Indonesia Co. LLC (Vico Indonesia), a joint venture owned mainly by European giants BP Plc and Eni SpA.

With the capital expenditure, the operator plans to drill 62 development wells, conduct geology and geo-physic studies, work over on eight wells, and well services on 512 wells.

Gautama said that state income from Sanga-Sanga Block this year is estimated to reach $1.15 billion.

Editing by Benget Besalicto Tnb.