Cue sees delay in East Java field first oil production

Australian oil company Cue Energy Resources reported on Monday that protracted negotiations and delays in completing modification to the production barge had further delayed first oil from Oyong field in sampang PSC offshore East Java.

The company said that crude production from Oyong, which is located in Santos-operated Sampang PSC would be pushed back by another quarter to third quarter of this year, while gas production would not commence until mid-2007, or about six months later than originally planned.

Cue said that initial field oil flow rates are likely around 10,000 barrels of oil per day, while gas production rate will be between 40 and 60 million cubic feet per day.

A clearer picture is unlikely until the field has been producing oil for several months, Cue added.

Santos operates the Oyong field with 40.5 percent interest. Others participants in the field are Singapore Petroleum Company 36 percent, Cue 13.5 percent, and East Java regional government associated company PT Petrogas Oyong Jatim 10 percent. (alex)