Premier works up Natuna Sea gas development options

Offshore staff

LONDONPremier Oil is working on a new round of developments in the Natuna Sea block A offshore Indonesia to fulfil its supply commitments to Singapore and the Indonesian domestic market.

Front-end engineering and design has been completed for the Bison, Iguana, and Gajah Puteri projects and a final investment decision on each should follow in early 2017.

In addition, the company has identified infill drilling prospects at Gajah Baru and is evaluating other incremental developments, including its deeper Lama play discoveries and water handling/gas compressor reconfiguration projects at both Anoa and Gajah Baru.

In parallel, evaluation continues of potential development scenarios for the 2014 Kuda and Singa Laut discoveries in the company’s Tuna offshore block. Premier has applied to the regulator to extend the license’s exploration period by a further two years.

Offshore Vietnam, production efficiency has been high at the Premier-operated block 12W, containing the Chim Sáo and Dua fields, with strong reservoir performance.

Output is down compared with the first half of 2015 reflecting natural decline from the wells. However, the company has implemented successful well stimulations and plans further stimulations to help offset the decline.

There are also two infill drilling candidates on the block that could add incremental production from 2017 onward.

Despite the lower production unit operating costs are steady at $9/boe, reflecting cost savings achieved through renegotiation of vessel and helicopter contracts and lower fuel and insurance costs.

Premier is in talks with PetroFirst concerning a revision of the FPSO charter, including reductions in the cost of the lease rate. These would cut operating costs further.

08/19/2016

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