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, with the Naga and Pelikan fields tied into the Gajah Baru facilities in 2014 and 2015 respectively.
In addition to Natuna Sea Block A we hold interests in Kakap, a producing offshore asset, and the Tuna licence where Premier discovered in excess of 100 mmboe in 2014.
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.
Over the course of 2014/2015 Premier brought on-stream the Naga and Pelikan fields. Both fields will deliver additional reserves into the Singapore and domestic market. Together the fields are capable of delivering up to 200 BBtud which will allow Premier increased operational flexibility, additional volumes to be supplied to meet growing market share within existing contracts and, when the opportunity arises, to respond to increased Singapore or domestic gas demand.
- 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%).
BIGP (28.67% operated interest)
Premier is progressing FEED for the Bison and Iguana projects as single well subsea tie-backs to Pelikan while concept select for the Gajah Puteri field is underway. Together these fields could increase gross deliverable reserves to Singapore and the local market by over 100 bcf.
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 327 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. Planning for a 2016 appraisal campaign is now underway.
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. The next well to test the Lama play will be the appraisal of the Anoa Deep discovery.