Vico Indonesia to invest $1 billion to boost E. Kalimantan gas production
Tuesday, October 17 2006 - 02:24 PM WIB
VICO Indonesia President and CEO Chris J. Phillips said in Jakarta that investment would mainly go to drilling and fracturing the reservoir.
He said currently VICO employed 3 rigs and would add another 2 early 2008 to carry out massive drilling campaign to increase production from its gas fields. VICO?s major gas fields are called Badak, Nilam, Mutiara, Lampake, and Semberah.
He said that 2006 production from Sanga-Sanga PSC would stand around 535 MMCFD, declining to 475 MMCFD in 2007. Production is expected to increase in 2008 to 586MMCFD and peaked in 2009 at 621MMCFD and then would steadily decline to reach 338MMCFD in 2012.
Gas production from VICO is steadily declining after reaching 1 BCFD production in 2003.
VICO is second biggest gas supplier to Bontang LNG plant after French giant Total E&P Indonesia, which currently produces around 2.6BCFD of gas from its Mahakam PSC.
Phillips said that the recent drilling at Mutiara flank showed encouraging results and has possibility to add to production scenario. He said that 1 well drilled 1.3 km near the existing field in July 2006 had been tied in as gas producer and is currently producing some 10MMCFD. ?It?s very encouraging. Further works would be carried out to determine the potentiality of the prospect,? he said.
Vico Indonesia is equally owned by Anglo-American firm BP Plc and Italian firm Eni SpA. (alex)