Premier acquired its first operated acreage in Indonesia – Natuna Sea Block A – which included the Anoa oil field in 1996. We subsequently developed the Natuna Sea Gas Project:
- GSA1 signed in 1999, making the commercialisation of the stranded gas cap at Anoa possible
- WNTS pipeline from Singapore completed in 2000
- First gas from the Anoa field achieved in early 2001
- First gas achieved under the Domestic Swap Agreement
We have also made several discoveries on Natuna Sea Block A since 1996, including Naga and Gajah Baru in 2000 and Macan Tutul, Lembu Peteng and Lukah discoveries in 2006. Premier plans to commercialise these additional discovered resources through reserve-based GSAs to Singapore and Indonesia. Gajah Baru marked the second phase of that process,and the Naga and Pelikan fields will be tied into the Gajah Baru facilities, with first production expected in the second half of 2014.
In addition to Natuna Sea Block A we hold interests in Kakap, a producing offshore asset, Block A Aceh, a future onshore gas development project which also contains around 20 exploration prospects, and an exploration licence called Tuna.
Premier has an interest in two producing licences – Natuna Sea Block A and Kakap – in Indonesia.
- Natuna Sea Block A (operated 28.67% interest)
The Natuna Sea Block A licence was obtained by Sumatra Gulf Oil in 1979. Oil production from the Anoa field began in November 1990 from nine platform wells located in the East Lobe. Following the acquisition of Sumatra Gulf Oil in 1996, additional development was undertaken with the installation of the processing and compression Anoa Gas Export platform and the West Natuna Transportation System (WNTS) pipeline for gas export to Singapore.
Gas is currently produced from the Anoa and Gajah Baru gas fields in Natuna Sea Block A PSC and from fields in the Kakap PSC in which Premier also has an interest (see below). The two PSCs are located adjacent to each other some 500 km north east of Singapore in the West Natuna Sea. Gas from the fields is exported by pipeline to Singapore through the 650 km WNTS.
Deliveries under a US$ gas contract (GSA1) with SembCorp, a government controlled Singaporean utility, commenced in January 2001 and are expected to continue under a life of field contract until 2028. SembCorp sells the gas to various end users including SUT Co-Gen, Tuas Power and Exxon Chemicals.
In April 2008 Premier signed three further fully termed Gas Sales Agreements (GSA2, GSA3 and GSA4) with SembCorp for additional gas sales into the Singapore market, and with PT Pelayanan Listrik Nasional Batam (PLN) and PT Universal Batam Energy (UBE) for gas sales to be used in power generation in Batam, Indonesia.
Gajah Baru, which was discovered by Premier in 2000 and successfully appraised in 2004 is the first of a number of fields to be developed to supply the additional gas. Under GSA2, Gajah Baru is contracted to ship approximately 90 bbtud to Singapore.
Export of gas to Singapore from the Gajah Baru facilities commenced on 24 October 2011. An additional 40 bbtud, originally contracted under GSA 3 and GSA 4, to be supplied to buyers in Batam Island, Indonesia, is to be supplied to Singapore in exchange for Sumatra gas volumes, currently under contract to Singapore, which will be redirected to other domestic markets in Indonesia.
- Kakap field (18.75% non-operated interest)
The Kakap field was discovered by a subsidiary of Marathon Oil in 1978, with well KG-IX, and first production commenced in March 1986. Kakap consists of 10 separate fields, which have been developed with a combination of platforms and subsea tie-backs to the Kakap FPSO, where the oil is stabilised and exported via tankers.
Premier acquired its interest in the Kakap field in December 1996 through the acquisition of Discovery Petroleum NL. Gas production started in 2001 and is sold under GSA1 to Singapore (SembCorp) as described above.
Premier's partners in the Kakap field are Star Energy (operator), Medco, PetroChina, and Pertamina (10%).
Significant projects in our Indonesian portfolio include:
- Pelikan and Naga (28.67% operated interest)
Project sanction of Pelikan and Naga was achieved in the first half of 2012 and both platforms were tied-in to the Gajah Baru facilities for export via the WNTS during the first half of 2014. Development drilling is now underway. Pelikan and Naga will be brought on-stream to backfill our existing contracts and, when the opportunity arises, to increase further our market share of GSA1.
- Block A Aceh (41.67% non-operated interest)
In April 2006, Premier acquired a 16.7% equity share in Block A Aceh (formerly North Sumatra PSC Block A) onshore Indonesia from a subsidiary of ExxonMobil. This equity interest was subsequently increased to 41.67% in January 2007. The block contained three undeveloped discoveries (Alur Siwah, Alur Rambong, and Julu Rayeu). During 2013 EPCI bids for facilities were received and an in-principle agreement reached on a gas price with an end user and the Indonesian government. In April 2013 the Matang-1 exploration well on Block A Aceh discovered gas and was subsequently tested for flow rate and gas quality information the results of which showed good quality gas across flow rates of 25 mmscfd. The success of the well has caused the joint venture to consider the potential for alternative development scenarios.
In July 2014, Premier sold its interests in Block A Aceh to KrisEnergy Asia Holdings. Completion is subject to government approvals.
Tuna Block (65% operated interest)
In March 2007, Premier was awarded a 65% operated interest in the Natuna "Tuna" offshore block by the Indonesian Government. In April 2014, Premier the Kuda Laut-1 well in Tuna PSC discovered 183 feet of net oil-bearing reservoir and 357 feet of net gas-bearing reservoir. Oil and gas samples were also recovered to surface. The well was then side-tracked to drill the Singa Laut prospect in an adjacent fault block where 177 feet of net gas-bearing reservoir quality sands were penetrated. Appraisal drilling to further assess the combined Singa Laut and Kuda Laut oil and gas resources is targeted for 2015.
Anoa Deep (28.67% operated interest)
The Anoa development well (WL-5x) on Natuna Sea Block A was deepened to a total depth of 11,012 feet to investigate the potential of the Lama Formation in the first quarter of 2012. The well encountered approximately 300 feet of fractured Lama Sandstones and a decision was taken to drill stem test the Lama interval. The Lama formation was subsequently tested and flowed gas at a rate of 17 mmscfd. Over 2014 and 2015 Premier will target a number of leads and prospects including Ratu Gajah and Anoa Deep Appraisal.