Pertamina Approves Andalas' TOE Proof of Concept Work Program in Sumatra

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.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Report: Hiring Managers See Salaries S... (Mar 23)
 -  Repsol Chooses Atlas for Onshore, Offs... (Mar 23)
 -  OGA Awards 25 Licences for 111 UKCS Bl... (Mar 23)
 -  UK Minister Brands Oil Worker Discrimi... (Mar 23)
 -  Analyst Sees Possible Crest for US Gas... (Mar 22)


Most Popular Articles

From the Career Center
Jobs that may interest you
United States Odessa: Engineer - Frac/Acid
Expertise: Petroleum Engineering
Location: Odessa, TX
 
US Kilgore, TX: Transportation Foreman
Expertise: Logistics Management
Location: Kilgore, TX
 
United States Houston: Senior Drilling Fluids Engineer
Expertise: Drilling Engineering
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $50.64/BBL 0.62%
Light Crude Oil : $48.04/BBL 1.47%
Natural Gas : $3.01/MMBtu 2.58%
Updated in last 24 hours