FEED for well head platform of AAL project near completion: AWE

By Romel S. Gurky

ASX-listed AWE Ltd said that Front End Engineering and Design (FEED) for the Well Head Platform (WHP) of the Ande Ande Lumut (AAL) oil field project offshore Natuna is nearing completion.

The company said in a statement Wednesday that ASX-listed Santos Ltd as the operator of the Northwest Natuna PSC, where the ALL oilfield is located, has lodged a revised Floating Production Storage and Offloading (FPSO) tender plan with the Indonesian regulator and once approved, the FPSO tender process will commence in the second half of the 2014 calendar year.

Santos holds 50 percent interest in the PSC, with the remaining balance is held by AWE.

AWE said the operator has modified the approach to the procurement of the Floating Production Storage and Offloading (FPSO) vessel, moving from a design competition to a FEED study prior to a two stage tender. ?The Final Investment Decision for the project is planned for FY 2014-15, following completion of the FPSO tender process, with first oil expected in 2017,? the company said.

AWE said the company is working closely with Santos? technical teams in Australia and Indonesia to assist their interpretation of the K?sand and G?sand reservoirs to optimize field development. In addition to the current development of the K?sand, the joint venture is considering appraisal drilling of the deeper G?sand during 2015 to evaluate its potential development. Successful appraisal of the G?sand would add significant reserves and value for AWE shareholders.

AWE has booked 24.8 million barrels of Net 2P Reserves for the AAL 0il Project, which represents the company's entitlement under the terms of the PSC, as well as 7.4 million barrels of Net 2C Contingent Resources.

The AAL oil project is located in Northwest Natuna PSC, Northwest Natuna Sea.

Editing by Reiner Simanjuntak