E. Java?s Oyong oil, gas field projected to commence production in 2004

Australian oil company Cue Energy Limited said on Thursday that Oyong oil and gas field which is located in Sampang PSC offshore East Java is projected to commence production as early as 2004.

Cue said a joint gas and oil development is currently being planned and Sampang partnership is keen to progress the project to an early development decision.

Cue said the indicative development concept comprises 2 to 3 oil/gas wells, small offshore unmanned platform, 60-km gas pipeline to power station with onshore gas plant besides power station, while oil will be produced to leased processing barge.

Cue did not disclose the volume of oil and gas production planned from Oyong, but an official from Indonesian upstream authority BP Migas said Oyong would produce gas at maximum volume of 30 million standard cubic feet per day (MMCFD) and the offtaker will be state electricity company PLN, which is in severe shortage of gas.

Oyong is estimated to contain 100 million barrels of oil and 100 billion cubic feet of recoverable gas.

Cue said an additional wildcat well would be drilled on the Oyong trend in 2003. The target structure, Mangga (another prospect Wortel may also be drilled) has the potential to hold similar volumes of gas to Oyong. Detailed seismic has also identified a total of 18 targets worthy of further examination and an infill seismic survey to evaluate a number of them is expected to begin in early December

Australian oil company Santos Limited is the operator of Sampang PSC, where Oyong filed is located with 45 percent participating interest, while Coastal Indonesia Sampang, a unit of El Paso and Cue Energy hold 40 percent and 15 percent, respectively. (alex)