Premier reviews gas development options offshore Indonesia

Offshore staff

LONDONPremier Oil is progressing plans for a new phase of gas field developments in the Natuna Sea block A offshore Indonesia.

These are needed to meet contractual obligations in Indonesia and Singapore.

Front-end engineering and design has been completed on the Bison, Iguana, and Gajah Puteri projects with investment decisions targeted for 4Q 2016.

Evaluation also continues of potential development scenarios for the 2014 Kuda/Singa Laut discoveries on the offshore Tuna block. Premier is conducting a farm-out process with a view to reduce its 65% interest in the block, to better manage its exposure going forward.

Offshore Vietnam, oil and gas production from the Premier-operated block 12W, containing the Chim Sáo and Dua fields exceeded expectations last year.

A program that involved acidizing the reservoir to improve its delivery capacity and increased use of gas lift in the wells has helped to maintain production at levels similar to those achieved in 2014, with operating efficiency of 87%.

Contractual changes led to further improvements in plant reliability. However, some of the existing wells are starting to experience natural decline.

Operating costs at Chim Sáo were around $11.7/boe last year, 20% lower than the previous year. Cost savings and efficiency improvements were achieved through renegotiation of contracts; assumption of direct control of the offshore operations and maintenance services for the Chim Sáo FPSO; changing crew shift patterns and the use of lower cost and more fuel efficient supply vessels.

02/25/2016

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