Premier To Expand Indonesian Gas in 2019
UK independent Premier Oil’s first-half production declined to 76,200 barrels of oil equivalent/day, from 82,100 boe/d in 1H 2017, reflecting asset sales offset by a ramp up of its UK Catcher field, as it anticipated new gas production next year from Indonesia. The company maintained its full year 2018 net production guidance of 80-85,000 boe/d.
Of the total, the UK accounted for over half with 41,300 boe/d; 16,200 boe/d came from Vietnam; 13,400 boe/d from Indonesia and 5,300 boe/d from Pakistan.
Net profit increased by 142% to $98.4mn (albeit including $8.3mn from divested Pakistan gas operations, classed as discontinued) thanks to higher oil prices and the Catcher ramp-up; the completion of the sale of Premier's entire Pakistan business to Al-Haj for $65.6mn announced in April "remains subject to final approvals from the Pakistan authorities."
In Indonesia, development of the Bison, Iguana and Gajah Puteri (BIG-P) gas fields is “proceeding well and on budget” and due to deliver first gas in 3Q 2019, said Premier without disclosing expected flow rates. “Once on stream, the BIG-P gas fields will help backfill the group's contracts into Singapore and maintain production from Natuna Sea Block A,” it said.
Catcher Area in the UK North Sea achieved plateau production, with day rates of up to 70,000 boe/d (gross), mostly oil. Premier has identified near field oil discoveries (Laverda and Catcher North) as potential subsea tie-backs to Catcher Area, and said it is looking to sanction their development in 1Q 2019.
In the same UK North Sea area, Premier a week ago sanctioned its Tolmount Main gas project, expected to produce 300mn ft3/d gross at peak, with first gas in 4Q2020. But its Huntington gas field averaged 7,300 boe/d in 1H2018 “reflecting natural decline.”
Premier announced the sale of its Babbage Area to UK firm Verus in April and said recent disposals of Esmond Transportation System (UK) and Kakap (Indonesia) to others were completed in 1H 2018.