I would expect this to be positive news for QPN management and investors?
I know it's less than 2 months old,but I think it's postive
Your thoughts
reference Jakarta Globe December 28, 2012 Projects in 2013 Will Boost Oil and Gas Output, SKMigas Says
Some key oil and gas projects in Indonesia are expected to be completed next year, helping the country to get closer to its energy production target, the temporary regulator said on Thursday.
Indonesia set its oil production target at 900,000 barrels per day for next year, according to the state budget, while gas production is aimed at 1.36 million barrel oil equivalent per day.
Next year’s oil production goal is lower than this year’s target of 930,000 bpd, as the government accounts for dwindling production from the nation’s aging wells. On gas, it was the first time the government put such a prediction in the state budget.
Hadi Prasetyo, head of public relations at SKMigas, a temporary oil and gas regulatory body at the Energy and Mineral Resources Ministry, said in a statement on Thursday that producers will be “actively doing optimization of production activities and maintenance [in oil and gas fields] to counter the natural decline in production.”
He said that key projects scheduled for completion next year will boost the nation’s oil and gas production. Such projects include the Sumpal Field in South Sumatra, operated by ConocoPhillips, which will produce 155 million standard cubic feet per day (mmscfd); Ruby Field in South Kalimantan, managed by Pearl Oil, that will produce 100 mmscfd; and Peciko 7B field and Sisi Nubi in East Kalimantan, operated by Total E&P Indonesie, which will produce a combined 170 mmscfd. Total also operates Peciko 7C field that will produce 120 mmscfd of gas and 280 bpd of oil.
SKMigas also said in the statement that some existing fields will boost production by using enhanced technology, yielding an additional 1,200 bpd of oil.
Oil fields set to boost production include Kaji-Semoga Field, operated by Medco E&P that will boost production using an improved oil recovery scheme, and Minas Field, managed by Chevron Indonesia that will use the process of chemical injection to produce more oil. Tanjung Field, operated by Pertamina EP, and Widuri field, operated by CNOOC, will also contribute to the production of 1,200 bpd.
SKMigas said that in 2013, oil and gas producers will drill 701 new wells for development, conduct maintenance on 417 existing wells and try to find more oil and gas reserves using seismic surveys.
Producers will also reactivate 130 suspended wells so that they can contribute an additional 1,400 bpd.
As for 2014, development will be made in the Banyu Urip field in East Java that is controlled by state-owned energy company Pertamina and energy giant Exxon Mobil.
The field, said to be Indonesia’s largest untapped oil reserve, is expected to produce 160,000 bpd — an eightfold increase from current the production of 20,000 bpd.
Indonesia’s oil production has been declining in line with natural trajectories due to aging fields. Producers need to implement advanced techniques, including enhanced oil recovery, in which water or chemicals are injected to extract more oil.
SKMigas was established in November to carry on the role of the now-defunct oil and gas regulator BPMigas, whose legal backing was crippled by a court ruling.
QPN Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
