Eric Watkins
Senior Correspondent
LOS ANGELES, Nov. 3 -- Chinese and Japanese firms are increasing operations in Indonesia.
Japan's Inpex Corp. is preparing to develop the late-2000 Abadi gas discovery in 580 m of water on the Masela Block adjacent to Australian waters. The company drilled two appraisal wells in 2002 that it says "far exceeded expectations."
Starting in mid-2006, the company will drill four wells, mainly in the northwestern part of the block.
Inpex, which owns full rights to the area, plans to use production to feed a 5-7 tonne/year LNG facility and will begin efforts in 2007 to form long-term supply agreements with electric power and gas companies.
Expecting development expenses of up to ¥500 billion, Inpex plans to begin plant and pipeline construction from 2008, with production expected to commence during 2010-15.
Meanwhile China's PetroChina Co. hopes to increase production from its oil and gas fields in Indonesia by 23% to 88,100 boe/d in 2006. The company's Indonesian unit is producing 71,600 boe/d from the six blocks that it operates, with a target production of 74,000 boe/d by yearend.
PetroChina Vice-Pres. Budi Setiadi said additional output next year is expected from all of the blocks where the firm is operating, except Tuban, which will maintain production at 16,000 boe/d.
The Jabung block—PetroChina 45%, Malaysia's Petronas 45%, and Indonesia's PT Pertamina 10%—will produce 50,000 boe/d, compared with 46,000 boe/d currently.
He said the third phase of Betara field development in August started producing 9,500 b/d of crude oil, 100 MMscfd of gas, and about 15,000 b/d of gas liquids (see map, OGJ, May 31, 1999, p. 70).
Buti said Betara is operating at 80% capacity and will reach full capacity in mid-November.
PetroChina's production from the Salawati offshore basin in Papua will rise next year to 7,600 boe/d from 5,300 boe/d, he said, while output from the onshore field will jump to 9,700 boe/d from 3,300 boe/d.
Contact Eric Watkins at [email protected].