Indonesia - North Sumatra Block A update 23 June 2010 Forward - - PowerPoint PPT Presentation

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indonesia north sumatra block a update 23 june 2010
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Indonesia - North Sumatra Block A update 23 June 2010 Forward - - PowerPoint PPT Presentation

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Indonesia - North Sumatra Block A update 23 June 2010 Forward looking statements This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events

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23 June 2010 Indonesia - North Sumatra Block A update

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June 2010 | Page 1

Forward looking statements

This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events and are subject to known and unknown risks and uncertainties. A number of factors could cause actual results, performance or events to differ materially from those expressed or implied by these forward-looking statements.

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June 2010 | Page 2

North Sumatra Block A (NSBA)

  • Established hydrocarbon province
  • Existing undeveloped discoveries
  • Under-explored
  • Rehabilitation opportunities

16.66% Japex 41.67% Premier 41.67% (op.) Medco

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June 2010 | Page 3

Summary

PSC Extension

  • Significant progress made in securing Aceh local government approval, expect

Central Government approval in Q3

Gas Development – Alur Siwah / Alur Rambong / Julu Rayeu

  • Facilities – EPCI documents prepared for tender, award expected Q1 2011
  • Drilling – rig secured, detailed well planning underway
  • Gas Transportation – pursuing Right of Way sharing with ExxonMobil
  • The Operator (Medco) plans First Gas at the end of 2012. Alur Rambong is planned

to have a full year of production in 2013 with Alur Siwah following 6 months into the year

Contingent Resources

  • Work-overs on old oil fields successfully executed in 2009
  • Currently evaluating results and forward programme
  • Internal evaluation (screening studies) undertaken for Kuala Langsa
  • Exploratory discussions with Operator and 3rd parties

Exploration Programme

  • Matang-1 proposed for 2011
  • 2nd Exploration well likely in 2012
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June 2010 | Page 4

PSC extension – MOA with Aceh

  • Under the Autonomy agreement between Central Government and Aceh, the

Regional Government needs to approve any PSC award or extension in Aceh

  • MOA between Aceh Governor and Medco – signed 5th April
  • 1% of total revenue from production each year to be used for Community

Development – as per law 2006/11

  • Local Government Company to participate in 3rd Party pipeline project
  • Aceh to support Extension of the PSC to the JV, with the above terms to be

incorporated in to the PSC

  • Aceh Parliament (DPR) verbally endorsed terms of the MOA on 17th May, as

announced by Aceh DPR Head, Pak Hasbi Abdullah. Waiting on formal approval

  • With formal approval from Aceh, Medco expects Central Government approval

to be forthcoming in Q3

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June 2010 | Page 5

Gas development – gas sales

  • Pupuk Iskandar Muda (PIM) – Fertilizer production
  • 2 x Fertilizer plants each requiring c 55 BBtu/d of gas
  • GSA signed in December 2007
  • 223 Tbtu reserves at 110 BBtu/d (PIM obliged to take excess TCQ)
  • $6.50 mmbtu, profit share when Urea above $425/tonne
  • PLN – Electricity
  • New Power generation plant to be built close to Alur Rambong field
  • GSA signed in April 2008
  • 85 Tbtu at 15 BBtu/d
  • $5.30 mmbtu, 3% annual escalation
  • Initial delivery expected to be at 5 bbtu/d, ramping up to 15 bbtu/d
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June 2010 | Page 6

Gas development – overview

Field Development

  • Alur Siwah 10-12 wells
  • Alur Rambong 2 wells
  • Julu Rayeu 6 wells (fuel gas)
  • Central Process Facility (CPF)

with condensate separation, plus H2S and CO2 removal

  • 140 MMscf/d export to:
  • PIM – 110 bbtu/d
  • PLN – 5-15 bbtu/d
  • 2000-3000 bcpd
  • Gas Export Pipeline to SLS-A

and Power plant

  • Gas transportation cost from

SLS-A to PIM, paid by PIM

  • Separate condensate line from

CPP to PT Arun

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June 2010 | Page 7

Gas development – status

Land Acquisition

  • Good progress made - acquisition survey complete, land largely in plantation areas simplifying

purchase process

  • Options for CPP location.
  • Permits requested – Expect to be granted when Aceh formally endorses PSC

Facilities

  • Tender documents prepared for facilities EPCI
  • Two Development options carried in the tender:
  • 1. Alur Rambong FG at 55bbtu/d followed by Alur Siwah at 110bbu/d after 6 months
  • 2. Alur Rambong FG at 55bbtu/d followed by Alur Siwah at 55 bbtu/d after 6 months, then

ramping up to 110 bbtu/d after a further 18 months

(Essentially option 2 defers installation of one of the acid gas removal plants. Decision to be made once commercial bids received).

Drilling

  • Detailed well planning underway for first phase of development drilling
  • Medco secured PT Antareja Resources Rig-8
  • Long Lead drilling tangibles contacts ready to award
  • Preparing tender documents for drilling services – to be tendered in Q3
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June 2010 | Page 8

Contingent resources – oil fields

  • Work-over of 6 wells (5 producers & 1 water injector)

successfully completed

  • Wire-line logs run in two wells – movable oil interpreted,

Tu-33 tested at 25 bopd

  • Demonstrated:
  • Wells can be worked over and produced
  • Strong and positive relationship with the local

community, extremely important as a precursor to the gas development

  • Going Forward:
  • Focus continues to be on gas project but meanwhile

the Operator is evaluating results to-date and formulating further work programmes – including gathering additional data in current wells, considering additional work-overs and some infill drilling

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June 2010 | Page 9

Contingent resource – Kuala Langsa gas field

  • Giant Gas Field Discovered in 1992
  • c.10 Tcf of Gas in Place – the one well

drilled to date recovered around 80% CO2 in the gas test.

  • Screening studies undertaken to develop

and sequestrate CO2

  • Exploratory development discussions with
  • perator and approaches from third parties

Kuala Langsa -1

TD 3756 m

E W S N

Peutu Carbonate

  • ver basement
  • Lwr. Baong Interval

Bend in Line

Top Peutu Fm. Depth C.I.=50 metres

2500m GWC -3511m

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June 2010 | Page 10

Exploration

  • Under-explored area – last exploration well

in 1978

  • Deep Gas Potential – backfill PIM Gas Sale

from Alur Siwah

  • Matang-1 - proposed for 2011
  • Potential 2012 wells
  • Peudawa Rayeu
  • Terumbu Peutouw
  • Kuala Langsa
  • All the above appraise existing discoveries
  • Operator now working on shallower oil-

prone intervals to develop further exploration opportunities

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June 2010 | Page 11

Exploration – Matang prospect

Matang-1 - Proposed for 2011

  • Reservoir Peutu Carbonates (Alur Siwah,

Arun) – target reefs

  • Gas proven by Pergidatit-1
  • Main risk is reservoir quality
  • Area

15,731 acres

  • Depth to crest

2370 mss

  • Column height

145 m

  • Reserves range

113 – 240 – 440 bcf

  • Operators number 400 – 715 – 1330 bcf
  • Development Concept is for minimal surface

facilities tied back to Alur Siwah for processing and export to PIM

818 Matang 818 W E

2.5 Km 2.5 Km NSBA PSC: Top N4 Carbonate Depth Blue areas interpreted as reef build-ups

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June 2010 | Page 12

North Sumatra Block A (NSBA)

  • Established hydrocarbon province
  • Existing undeveloped discoveries
  • Under-explored
  • Rehabilitation opportunities

16.66% Japex 41.67% Premier 41.67% (op.) Medco

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June 2010 | Page 13 www.premier-oil.com

June 2010