AAL FID expected in second half of 2017
Friday, July 29 2016 - 02:35 AM WIB
ASX-listed AWE Ltd said on Friday that final investment decision (FID) for the Ande Ande Lumut (AAL) oil project, within the Northwest Natuna PSC in the Natuna Sea, has now been postponed to the middle of next year, from an earlier schedule of mid this year.
AWE, which owns 50 percent interest in the Northwest Natuna PSC (the other half is owned by operator Santos Ltd), said in a statement that that the postponement of the AAL FID was made to allow contractors more time to submit revised bids that conform to recent regulatory changes.
The company said that AAL appraisal well was spudded in May and two Drill Stem Tests (DST?s) delivered positive results, which could lead to an increase in gross recoverable oil for the AAL project and enhanced project economics.
Preliminary laboratory testing of the recovered oil samples from both the K Sand and G Sand reservoirs indicated lower levels of impurities than expected. The Joint Venture will undertake technical analysis and evaluation of this newly acquired data to be incorporated in Development Plan studies for the G Sand reservoir, which could be developed in conjunction with the already approved K Sand development.
?The operator has confirmed that the WHP and FPSO procurement processes for the K Sand development will be extended to allow bidding contractors more time to comply with recent regulatory changes. As a result, the operator is now targeting the second half of 2017 calendar year for FID and First Oil in 2020,? AWE said in the statement.
AAL, a 101 million barrel (gross 2P Reserves) oil project located offshore in the northwest Natuna Sea, is one of AWE?s major long-term growth projects.
Editing by Reiner Simanjuntak