Annual Report 2005 (6 MB) - Lundin Petroleum

OPERATIONS REVIEW
INDONESIA
Lundin Petroleum has been operational in Indonesia since 2002
and has a portfolio of production, development and exploration
assets. Production is generated from non-operated assets in the
Salawati Island and Salawati Basin licences.
Development of the TBA fi eld off shore Salawati Island is ongoing
with fi rst production expected mid 2006.
First gas production from the Singa fi eld on the Lematang Block
is expected in 2008. Gas will be exported through Sumatra to
Java phase 1 pipeline. The Heads of Agreement for the sale of the
gas was signed with PT Perusahaan Gas Negara (PGN) in January
2006.
There is further exploration potential and 2006 provides for
an active exploration programme both for operated and non
operated assets.
Reserves: 15.9 MMboe
2005 average net production: 2,260 boepd
2005 highlights
■ 14 development wells drilled in Salawati Island/Salawati Basin.
■ 2 development wells drilled in the TBA fi eld.
■ 10 exploration wells drilled in Salawati Island/Salawati Basin
– 3 small discoveries.
■ 1 operated exploration well commenced drilling, Jati-1. Drilling
at year end.
2006 work programme
■ 8 development wells to be drilled in Salawati Basin.
■ 2 development wells to be drilled in Salawati Island.
■ Complete the development of the TBA fi eld off shore Salawati
Island by installing a mobile production unit.
■ 2 exploration wells to be drilled in Salawati Basin.
■ 4 exploration wells to be drilled in Salawati Island.
■ 1 exploration well to be completed, Jati-1 in the Banyumas PSC.
■ 1 exploration well to be drilled, Tengis-1 in the Blora PSC.
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VENEZUELA
Venezuela is one of the world’s most prolifi c petroleum regions.
Lundin Petroleum has a working interest of 12.5 percent in the
Colón Block located in the western edge of the Maracaibo Basin,
near Lake Maracaibo.
Oil and gas is produced from eight individual fi elds in the Colón
Block with the La Palma fi eld being the main producer. Current
export capacity via the pipeline system is approximately 20,000
boepd (gross), although with increasing water production the
concession produces currently at around 13,000 to 14,000
boepd. Ongoing development drilling on La Palma is necessary
to maintain good production rates as the fi eld is characterised
by rapid water breakthrough and oil production decline soon
after drilling. Additional wells are planned for the La Palma fi eld.
Following the decision of the Venezuelan government in 2005
to restructure all operating service agreements in the country,
the Colón Block consortium agreed to commence negotiations
with Petróleos de Venezuela S.A (PDVSA) to create a “mixed
enterprise”. Negotiations are ongoing with PDVSA regarding
this conversion.
Reserves: 4.4 MMboe
2005 average net production: 2,110 bopd
2005 highlights
■ Drilling of 2 successful producers in La Palma fi eld Mirador
reservoir (LPT-11 and 12).
■ Drilling of LPT-14 in La Palma fi eld. This well found a full
oil column in the main Mirador reservoir and tested oil from
two deeper reservoirs, not previously drilled in La Palma fi eld
– the well has been on long term test and is producing oil
under natural fl ow.
■ 2 other La Palma fi eld wells were drilled LPT-10 and
13. However, LPT-10 was found to have been swept
due to production from other wells and LPT-13 found the
reservoir unexpectedly deep and was essentially nonproductive.
2006 work programme
■ Drill LPT-15 well in early 2006.
■ Complete long term testing of deep reservoirs in LPT-14 and
formulate plan for further development.
■ Bring on stream the main Mirador reservoir in LPT-14.