INDONESIA - Natuna.

There are several offshore oil and gas fields in Natuna, an archipelago in the South China Sea rich in hydrocarbons. The oilfields in West Natuna have a total capacity of about 190,000 b/d, down from 215,000 b/d in early 2003, but still making the area the fourth biggest oil producer next to CPI's system in Central Sumatra, Total/Inpex's East Kalimantan fields and the Java Sea.

The main operator in West Natuna is ConocoPhillips (CP), which produce 100,000 b/d, down from more than 110,000 b/d in early 2003, from Belida field and nearby structures in Block B, and holds 40% in a partnership with Inpex (35%) and ChevronTexaco (25%). Block B's recoverable liquid reserves are 260m barrels of oil, condensate and LPG. CP's local unit, Gulf Indonesia, operates the Kakap Block and has the 70,000 b/d KG and KRA fields, in partnership with Pertamina and other firms. Premier Oil of the UK (28.67%) operates in Block A which has the 10,000 b/d Anoa field (15,000 b/d in early 2003) and a major gas field. Its partners are KUFPEC of Kuwait (33.33%), Amerada Hess (23%) and Petronas (15%). These three blocks contain about 5 TCF of recoverable gas. They began exporting gas to Singapore on Jan. 3, 2001 through a 650 km marine pipeline from the fields to Singapore's Jurong island (see Vols. 56 & 60, No. 10).

ConocoPhillips is also exporting 100 MCF/d of Block B gas to Malaysia through another marine pipeline from the Hang Tuah offshore production platform to Petronas' Duyong platform in Malaysian territorial waters. Under a 20-year contract signed in March 2001, Block B supplies will rise to 250 MCF/d from 2007. Petronas received first gas on Aug. 8, 2002 (see Gas Market Trends No. 11).

Balanak and other Block B fields, including Kerisi and Hui, have been developed under a $2.5 bn fast-track programme to recover 1.4 TCF of gas and 150m barrels of liquids including LPG. Kerisi and the nearby Hiu have a 20-slot wellhead platform and an unmanned minimum facilities platform and some infield and inter-field pipelines. Water depth at Kerisi is 89 metres. Belanak field is producing LPG from a floating temporary FSO. The field will have a new major FSO for LPG storage and offloading by August 2008. Belanak's reserves are about 550 BCF of gas and 100m barrels of liquids. JGC of Japan got the $117m contract to design the LPG production facilities.

Premier has developed Block A's Gajah Baru (New Elephant) gas field. This has a gas processing platform, with the gas exported to Malaysia since late 2004. The field also has topsides with gas treatment and compression facilities capable of processing some 135 MCF/d of gas, a supporting sub-structure, and a 10-inch marine pipeline tying into ConocoPhillips' system. Block A gas deliveries to Petronas are under a 1 TCF contract.