Andalas Energy and Power Plc, an Indonesian focused oil and gas exploration company, reported Wednesday that the country’s national oil company PT Pertamina has approved the Tuba Obi East (TOE) proof of concept work program in the TOE Technical Assistance Contract (TAC) in South Sumatra.
The program will commence with the recompletion of the existing TOE-1 well and production testing of the gas bearing Air Benakat Formation (ABF) to assess deliverability, recoverable volumes, and gas quality at TOE. Andalas pointed out that the workover will reduce its upfront costs significantly and expedites the acquisition of key subsurface data to enable the optimization of the future drilling campaign.
Andalas, as technical operator, is finalizing the recompletion design, tender documents, and mobilization plans. It will seek budgetary approval for the program from Pertamina in the coming weeks, following which work will commence onsite.
"Over the past two months we have been working closely with Pertamina and our joint venture partner, PT Akar Golindo, to determine the most cost effective way to evaluate the gas in ABF at Tuba Obi East. Pertamina has recognized the significant potential of the ABF gas, its close proximity to a high demand energy market, and that the proof of concept work program will quickly and efficiently assess the gas quality, quantity and deliverability," Andalas CEO, David Whitby, said in the press release.
"Importantly, the TOE proof of concept program is in line with Andalas’ strategy to develop a gas-to-power business whilst contributing at the local level to the Government of Indonesia’s objective of decreasing the country’s power shortfall. The approved program will also reduce near-term costs by around 60 percent, allowing us to gather crucial subsurface data weeks earlier whilst simultaneously avoiding any potentially lengthy land acquisition delays," Whitby added.
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