FEED for Ande Ande Lumut completed
Tuesday, October 20 2015 - 12:48 AM WIB
Front End Engineering and Design (FEED) work for Ande Ande Lumut Oil Project, Northwest Natuna PSC in Natuna Sea has been completed and tendering for the well head platform (WHP) and Floating Production, Storage and Offloading (FPSO) vessel is planned to continue over the remainder of calendar year 2015 and into the first half of 2016, ASX-listed AWE Limited, a partner in the block, announced on Monday.
One positive aspect of the current low oil price environment is the potential to achieve significant cost savings as suppliers and service companies compete for reduced exploration and development opportunities.
AWE is working with the Operator, Santos, to identify and lock in cost savings for drilling, WHP construction and FPSO leasing contracts ahead of a Final Investment Decision (FID) currently scheduled for the second half of calendar year 2016.
The joint venture is also planning the development of the underlying G-Sand reservoir, estimated to contain an additional 36 million barrels of oil (gross 2C Resources), and is considering drilling an appraisal well prior to submitting a Plan of Development.
Ande Ande Lumut, a 101 million barrel (gross 2P Reserves) oil project located offshore in the northwest Natuna Sea, is one of AWE?s major long-term growth projects. The planned facilities for this transformative project comprise 33 horizontal wells in the K-Sand reservoir, a WHP and a FPSO vessel.
AWE owns 50 percent interest in the Northwest Natuna PSC, with the balance held by ASX-listed Santos Ltd.
Editing by Johannes Simbolon