AWE: FID for AAL project expected in first-half 2014
Thursday, October 24 2013 - 01:57 AM WIB
ASX-listed AWE Ltd said that good progress has been made on the Ande Ande Lumut (AAL) oil field development project in the Northwest Natuna PSC, with front end engineering and design (FEED) on the wellhead platform and tender pre-qualification for the FPSO in progress at year end.
The final investment decision (FID) for the project is planned for the first half of 2014 after the design competition has been completed and tenders have been received for the FPSO contract, the company said in a statement obtained Thursday.
Following an independent review and certification by RPS Energy Services, the company increased its estimate of gross recoverable oil for the AAL K-Sand reservoir by 33 percent to 101 million barrels, and reclassified the K-Sand to Reserves, booking Net 2P Reserves for the AAL K-Sand of 50 million barrels of oil, representing AWE?s entitlement under the terms of the PSC.
In addition, 35 million barrels of gross recoverable oil in the underlying G-Sand reservoir were classified as Gross 2C Contingent Resources, providing AWE with 15 million barrels of Net 2C Contingent Resources as the Company?s entitlement under the terms of the PSC.
A number of important project milestones were achieved during the year. Regulatory approval was received for AWE?s optimized reservoir development plan, which involves drilling 33 longer reach horizontal wells into the K-Sand reservoir where initial production rates could potentially exceed 25,000 bopd. Approval was also obtained for the FPSO Tender Plan and FEED contract for the well head platform.
AWE acquired the Northwest Natuna PSC in Northwest Natuna Sea, offshore Indonesia, in early 2012. But AWE sold 50 percent, and operatorship of the PSC, to Santos Ltd in August of 2013.
Editing by Reiner Simanjuntak