The repair work is expected to start immediately in order to get Langsa back to full production. The L1 and L2 wells were producing up to 7,000 barrels of oil per day before L1 was shut down. The L2 well is continuing to flow at a rate of about 2,200 bopd. The re-entry of L1 is expected to be completed within four to six months, according to Matrix.
State-owned Indonesian oil company, Pertamina, has awarded Matrix a certificate of commercial production (COCP) for its Langsa fields. Matrix said the significance of the COCP is that it confirms a company has complied with all of the contractual requirements of its agreement with Pertamina.
As a result, it is awarded "commerciality", meaning the company receives its share of profit oil according to its contract from all production from the date of award, Matrix added.
The second offtake from the Langsa field has been completed with 181,333 barrels of oil being offtaken. The oil was sold to South Korea at a price of approximately $US19 bbl. This was the second offtake from the Langsa fields, with the first being in December last year.
