ConocoPhillips commences first gas production from South Natuna Sea Block B PSC

U.S. oil major ConocoPhillips announced Tuesday that its natural gas production had started from the Hiu field in the South Natuna Sea Block B Production Sharing Contract (PSC) offshore South Natuna Sea.

Currently, the natural gas production level is 50 million cubic feet per day (gross) and is expected to increase to 120 million cubic feet per day (gross) by 2008, the company said in statement.

The company said that gas from the Hiu field will be processed through the Belanak floating production storage and offloading vessel (FPSO) and delivered to Malaysia through an international subsea pipeline.

The South Natuna Sea Block B PSC covers an area of approximately 6,933 square miles (11,162 square kilometers), with water depths ranging from 164 feet to 328 feet (50 meters to 100 meters). The Block was awarded in 1968 and has two producing mature oil fields and 16 gas fields in various phases of development.

The South Natuna Sea Block B PSC encompasses the Belida, Sembilang crude oil fields and the Belanak fields, which started crude production in 2004. The block also includes the Tembang, Belida, Keong and Kijing natural gas fields, which began production in 2002 to support sales agreements totaling 2.5 trillion cubic feet with Singapore and Malaysia.

ConocoPhillips is the operator of the block with 40 percent interest. Inpex Natuna Ltd. holds 35 percent interest and Chevron holds 25 percent interest. (denny)