Premier Oil updates Indonesian operation

Premier Oil reported its first half 2009 net working interest production of 11,000 barrel oil equivalent per day (boepd), declined slightly from 11,900 boepd in the same period last year. 

"This reflecting a good performance from the Anoa field as a result of strong Singapore demand, offset by a reduction in the Kakap field due to gas compression issues," Premier Oil told investors on Thursday, July 9.

The average oil price realized for H1 2009 was US$52.4 per barrel, halved from US$110 per barrel in the same period last year. Meanwhile average gas price from Indonesia operation was US$8.94 per MCF, dropped from US$14.25/MCF in H1 2008.

Premier also reported that the EPCI contract for the Gajah Baru development was re-bid with significant cost savings achieved. Following signature in May, operations to fabricate the deck and jackets for the two platforms are expected to commence shortly at PT Nisconi's construction facility in Batam. 

In North Sumatra, government signature to the Block A PSC extension is awaited prior to moving ahead with EPCI tendering for the Alur Rambong and Alur Siwah gas projects. First gas from the area is now expected in 2011.

Premier has participating interest in North Sumatra Block A (41.67%), Natuna Sea Block A (28.67%), and Kakap PSC (18.75%).

READ MORE!!!