VICO sees slight decline in 2009 gas, liquids production
Tuesday, January 6 2009 - 02:44 AM WIB
President & CEO Chris J. Phillips told Petromindo.Com on Monday that the company expects to produce 13,500 BPD of liquids this year, versus 15,000 BPD last year. Phillips said 2008 gas production was short of the 485MMCFD the company targeted, but liquids production exceeded the target of 11,000BPD.
VICO supplies most of its gas production to Bontang LNG plant and is currently the second biggest producer after Total?s Mahakam block.
Phillips said the company allocated US$300million capital spending this year to support aggressive 5-rig drilling program to drill 50 wells to make up production decline from old wells. Last year VICO spent $260 million in capital expenditure.
Phillips said the company is planning to drill one exploration well called Kumala-1, but thus far, it has yet been able to secure land for drilling.
Sanga Sanga PSC has been producing gas since 1977 and the reserves are dwindling.
VICO is banking on coal-bed methane (CBM) potential within its contract area to keep its future position as major gas producer.
Phillips said VICO had been applying for CBM PSC contract and is optimistic to be able to get 30-year license as the new government regulation has given priority to oil and gas company over coal miner to apply for CBM license within its concession area.
?As soon as we get the license we could conduct tests on our existing wells, which will quickly be followed by appraisal drillings to know the CBM potential,? he said, adding that VICO might be able to produce 500MMCFD of CBM in 2015-2016.
He declined to picture the CBM potential in Sanga Sanga. ?It could be zero, it could be big. We don?t know until we conduct drillings.? he said. A VICO official, however, said in May 2008 that CBM potential in the block could reach up to 10TCF.
VICO is a JV company equally owned by Anglo-American energy giant BP Plc and Italian oil, gas firm ENI SpA.(alex)