AWE: Drilling of G-sand reservoir in Northwest Natuna PSC set for next year
Govt approves FPSO tender plan
Thursday, October 30 2014 - 01:00 AM WIB
ASX-listed AWE Ltd said that an appraisal drilling of the deeper G-sand reservoir in the Northwest Natuna PSC, offshore Natuna will be carried out next year to evaluate potential development.
?The Northwest Natuna joint venture has approved the drilling of an appraisal well in the underlying G sand in 2015, and is now working to secure a drilling rig for the well,? AWE said in a statement Thursday.
?Successful appraisal drilling of the G sand and its subsequent development could add an estimated 35 million barrels of gross recoverable oil to the project?s reserves and create substantial additional shareholder value,? it added.
ASX-listed Santos holds 50 percent interest in the PSC and operatorship status, with the remaining balance is held by AWE.
Elsewhere, AWE said that the Front End Engineering and Design (FEED) work for the well head platform of the AAL project is complete.
?In late October, the joint venture received approval from the Indonesian government to begin the tender process for the Floating Production Storage and Offloading (FPSO) vessel. Completion of tendering for the FPSO is on the critical path for project approval,? the statement added.
Completing the FPSO tender process is a prerequisite for achieving final investment decision (FID) and is on the project?s critical path, AWE said.
The company has previously said that the FID for the project was planned for 2014-2015, following completion of the FPSO tender process, with first oil expected in 2017.
In another development, AWE said that the operator of the Bulu PSC, in East Java Sea, has completed a draft Plan of Development for the Lengo gas field and has submitted it to the upstream regulator, SKKMigas.
SGX-listed KrisEnergy Ltd, the operator, holds a 42.5 percent interest in the PSC, AWE also holds a 42.5 percent stake, with the balance held by two local firms Satria Energindo (10 percent) and Satria Wijayakusuma (5 percent).
Editing by Reiner Simanjuntak