Indonesia: Offshore Java fields could be converted to gas producers

Indonesia: Offshore Java fields could be converted to gas producers

Cue Energy Resources says the Santos-led partners have approved the Sampang
Sustainability Project (SSP) offshore Java, Indonesia.

Subject to government approvals, the Oyong and Wortel fields will be
converted for gas production, with uneconomic oil production ceasing.

Santos' forecasts based on implementation of the SSP reveal an increase of
2P reserves of around 17 bcf can be achieved.

The switch to gas-only operations will likely occur next September, allowing
both the FPSO Seagood and the FSO Surya Putra Jaya to be decommissioned the
following quarter.

This should reduce annual production costs from around $50 million in 2016
to $22 million by 2018.

Oyong and Wortel's reservoirs are in structural and structural/stratigraphic
trap closures in the Mundu formation. There are more prospects in this
formation, and a well could be drilled on the Paus structure in 2018.

Assuming drilling goes forward and is successful, Paus could be tied back
through the Oyong facilities, extending the gas production from the Sampang
PSC for several more years.

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Ref:
http://www.offshore-mag.com/articles/2016/09/offshore-java-fields-could-be-c
onverted-to-gas-producers.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com