FID for Natuna oil development expected in early ?13
Tuesday, July 31 2012 - 01:37 AM WIB
Australia-listed oil, gas firm AWE Limited reported on Tuesday that final investment decision to develop its oil field offshore Natuna will be made early 2013.
?Following completion of the NW Natuna and Anambas PSC acquisitions in February 2012, pre-development studies for the Ande Ande Lumut (AAL) oil field have commenced. These integrated studies are planned for completion in early 2013 at which point a final investment decision will be taken to develop the field,? the company said in a Quarterly Report.
According to the company, key work programs have included the analysis and validation of the subsurface geologic and reservoir dynamic models, and engineering studies for the design of the FPSO and well head platform. In addition, extensive oil / water separation studies have been undertaken to guide FPSO topside design.
Development of the contracting strategy for the FPSO has made good progress and an initial request For Information process has been conducted targeting experienced FPSO providers, with positive responses received from five companies, it added.
In parallel with the de-risking of the project and the resulting final investment decision, the company said it would also be seeking to bring partner(s) into the project.
AWE acquired 100 percent interest in both PSC from Genting Berhad earlier this year.
The two PSCs are located in the Natuna Sea in 70 meters to 90 metres depth of water. The NW Natuna PSC contains the undeveloped Ande Ande Lumut (AAL) oil field which is estimated to contain 76 million barrels of recoverable heavy oil. Three exploration and appraisal wells have been drilled in the field.
A Plan of Development (PoD) for the AAL Oil Field was approved by the Indonesian government in late 2011, with first production targeted for end 2014 at an initial plateau production rate of 25,000 barrels of oil per day.
The PoD includes the installation of a well head platform and a leased floating production, storage and offloading vessel (FPSO), together with the drilling of 43 development wells at an estimated total development cost of approximately US$600 million over the period from 2013 to 2015.
Editing by David Mustakim