AWE: FEED for Lengo gas project completed
Thursday, October 29 2015 - 05:10 AM WIB
ASX-listed AWE Limited said that the Lengo Gas project located in the Bulu production sharing contract is making good progress.
?FEED work for the offshore facilities and pipeline, and the geophysical and geotechnical surveys for the WHP site, the pipeline route and the onshore receiving terminal, have been completed,? AWE said in a statement Thursday.
?Negotiations for a gas sales agreement are well advanced and gas prices in the East Java are strong,? it added.
AWE and SGX-listed KrisEnergy each holds a 42.5 percent interest in the Bulu PSC. Another 10 percent is held by PT Satria Energindo, and the remaining 5 percent by PT Satria Wijayakusuma.
The Lengo gas accumulation is located in the Bulu PSC, which covers 697 sq. km over the East Java Basin in water depths of 50 to 60 meters. The development plan was approved by the Indonesian authorities in late 2014 and comprises four development wells, an unmanned wellhead platform and a 20-inch, 65-km export pipeline to transport the gas to shore.
The company is in negotiations over gas sales and production is expected to begin approximately 24 months after the joint-venture partners declare final investment decision. The field will produce 70 million cubic feet per day at plateau.
Editing by Reiner Simanjuntak