Environmental study for Lengo gas development approved
Monday, August 15 2016 - 01:29 AM WIB
SGX-listed KrisEnergy Ltd said that the Environmental Impact Assessment for the Lengo gas development in the Bulu production sharing contract, offshore East Java, has been approved by the Indonesian Environment and Forestry Ministry.
The company, however, said in a quarterly report late last week that approval of the environmental permit is pending.
Elsewhere, KrisEnergy said that six companies have qualified for the engineering, procurement, construction and installation tender. The company unveiled earlier this year the PQ tender to select the EPCI contractor to develop facilities at the Lengo gas project.
The company said in January that the Lengo production will commence 24 months after final investment decision is declared. It added that production is expected to plateau at 70 mmcfd.
ASX-listed AWE Ltd and KrisEnergy each holds a 42.5 percent interest in the Bulu PSC. Another 10 percent is held by PT Satria Energindo, and the remaining 5 percent by PT Satria Wijayakusuma.
The Lengo gas accumulation is located in the Bulu PSC, which covers 697 sq. km over the East Java Basin in water depths of 50 to 60 meters. The development plan was approved by the Indonesian authorities in late 2014 and comprises four development wells, an unmanned wellhead platform and a 20-inch, 65-km export pipeline to transport the gas to onshore.
Editing by Reiner Simanjuntak