Conoco, partners to invest $3.4 billion on Natuna oil, gas block

US oil, as firm Conoco Inc. said Wednesday that the company and its partners planned to invest some US$ 3.4 billion in South Natuna Sea Block B project where it has a huge amount of gas and oil reserve.

Conoco Indonesia president Patrick Meyer told Petromindo that the investment was spread over the 12-year period, starting from 1998 to 2010.

He said the amount was the total investment the company and partners would make to develop production facilities such as well development, platforms, floating production storage and offloading (FPSO) and pipelines from West Natuna to Malaysia and Singapore.

The spending for 2002 alone would reach $ 209 million, said Meyer earlier.

Natuna Block B oil and gas field supplies gas to Singapore starting June this year and is underway to deliver gas to Malysia starting August 2002. Gas supply to Singapore and Malaysia would peak at 140 million cubic feet per day (MMCFD), and 250 MMCFD, respectively.

Earlier this year, Conoco has completed the construction of the moveable offshore gas production unit (MogPU to process gas before being delivered to Singapore through a Conoco-operated West Natuna Transportation System (WNTS), which is a 656-kilometer subsea pipelines. Meyer said the Hang Tuah moveable platform was able to handle 300 MMCFD of gas.

The FPSO facilities, which is expected to be completed in 2004, will be able to process 350 MMCFD of gas and to handle the extraction of 20,000 barrels of liquefied petroleum gas (LPG) per day and 75,000 barrels of oil per day.

Conoco is the operator of South Natuna Block B PSC with 40 percent working interest, while Japan?s Inpex and US giant ChevronTexaco hold 35 percent and 25 percent, respectively. (alex)