Page 9 - AsianOil Week 39

AsianOil SOUTHEAST ASIA AsianOil

IEC looks to future after subdued first-half

PERFORMANCE OIL and gas developer Indonesia Energy Corp. IEC’s COO, Charlie Wu, said: “We have
(IEC) saw its revenue and crude oil production updated our drilling schedule and we plan
both decline in the first half of this year, owing to to drill one well before the end of 2020, four
the coronavirus (COVID-19) pandemic. wells in 2021, six wells in 2022 and seven
Unveiling its results on September 29, the wells in 2023.”
Indonesia-focused junior said first-half revenue Company president Frank Ingriselli said
amounted to $1.02mn, down from the $1.18mn the company’s strong cash balance and low
recorded in the same period of 2019. IEC attrib- cost of production had allowed it to con-
uted this to the collapse in international oil prices tinue producing at Kruh wells and weather
as well declining production. the global economic downturn. He added
IEC saw its realised crude oil price fall by that this had paved the way for planned
roughly 40% from an average price of $62.70 drilling at Kruh to continue and that drill-
per barrel in the first half of 2019 to $37.41 ing operations should help send production
per barrel in the same period of 2020. Produc- costs below $20 per barrel.
tion in the January-June period, meanwhile, Commenting on IEC’s future plans, Wu said
shrank by 10,642 barrels year on year to a total the company continued to work on its develop-
of 36,608 barrels. ment strategy for the Citarum exploration block.
The company said its previously announced He said: “We are currently processing envi-
plans to drill new wells at its only producing ronmental permits for conducting 2D seismic
asset, the Kruh Block, had been delayed owing data. We are also working with the Indonesian
to the pandemic and a government slowdown on government in implementing a relatively new
work activity. However, the company remained technology in Indonesia for collecting seismic
upbeat and said it expected to drill one new well data, the use [of] vibroseis, which we plan to test
this year and a further 17 wells before the end in the eastern part of the Citarum block in the
of 2023. fourth quarter of 2020.”™

EAST ASIA

CNOOC caps off productive

September with third field start-up

PROJECTS & CHINESE state-run developer CNOOC Ltd start-up of both the wholly owned Liuhua 16-2
COMPANIES said this week that it had started production oilfield/20-2 oilfield joint development project
from a shallow-water oilfield expansion in cen- and the S1 area of the wholly owned Nanbao
tral Liaodong Bay, its third such announcement 35-2 oilfield.
for September. In announcing Liuhua 16-2/20-2’s start-up
The company said on September 28 that it on September 20, CNOOC Ltd said a 150,000
had started up the Jinzhou 25-1 oilfield’s 6/11 deadweight tonne (dwt) floating production,
area, which lies in water depths of around 22.5 storage and offloading (FPSO) and three under-
metres and is located in the largest of the Bohai water production systems had been purpose
Sea’s three main bays. built for the project, which lies in water depths
CNOOC Ltd, the listed arm of state- of around 410 metres.
owned China National Offshore Oil Corp. The company aims to bring a total of 26 devel-
(CNOOC), said the project’s eight-legged opment wells on stream, with peak production
wellhead platform was tied into the existing of around 72,800 bpd planned for 2022.
production facilities of the Jinzhou 25-1 and CNOOC Ltd said on September 11, mean-
Jinzhou 25-1S oilfields. while, that it intended to drill three develop-
The company aims to drill 19 production ment wells at Nanbao 35-2 oilfield’s S1 area to
wells and 10 water injection wells, which should raise crude oil output to a peak of around 1,800
help deliver peak output of around 16,500 barrels bpd next year.
per day (bpd) in 2023. CNOOC Ltd owns a 100% The S1 area’s production facilities include an
interest of Jinzhou 25-1. unmanned wellhead platform, which has been
The commencement of production from tied back to Nanbao 35-2’s existing production
the 6/11 area rounds out an impressive month infrastructure. The project is located at an aver-
for the developer, which also announced the age water depth of 17 metres.™

Week 39 01•October•2020 www. NEWSBASE .com P9