INDONESIA - Operating Costs.Indonesia is not a low cost country for E&P investors, in view of its complex geology, maturity of most fields and lack of infra-structure in remote frontier areas. E&P costs are higher than in the Middle East and the major North Sea producing regions.On average, wellhead well·head n. 1. The source of a well or stream. 2. A principal source; a fountainhead. 3. The structure built over a well. wellhead Noun 1. oil production costs in Indonesia come to $8.70/barrel, with less than $5/b in some cases and more than $10/b in other cases. At the onshore Duri oilfield of ChevronTexas in Central Sumatra, production cost after steam flooding is being maintained at $8.20-8.70/b, down 70 cents/b from early 1995. The cost of drilling onshore could range from $2.5-3.5m per well in mature areas in the west - such as the producing regions of Sumatra, East Kalimantan East Kalimantan (Indonesian: Kalimantan Timur abbrv. Kaltim) is Indonesian province on the east of Borneo island. The resource-rich province has two major cities, Samarinda (the capital and a center for timber product) and Balikpapan (a petroleum center with oil and Java - to $40m per well in the largely unexplored east like Papua (ex-Irian Jaya). Costs in remote frontier areas are high because of mountains and dense jungles and the lack of infrastructure. In some cases helicopters are required to transport personnel, equipment and supplies. The cost of drilling offshore would range from $3-6m per well in shallow waters See:
An arm of the Indian Ocean between Timor and Australia. Noun 1. Timor Sea - an arm of the eastern Indian Ocean between Timor and northern Australia and some areas of Natuna Sea, the costs can be high as well. |
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