Kangean Energy to drill five development wells in TSB fields

The operator of Kangean PSC, onshore/offshore East Java , Kangean Energy Indonesia (KEI) will soon drill five development gas wells in the Terang, Sirasun and Batur (TSB) gas fields.

The company?s vice president (VP) for Human Resources & Administration, Is Nugroho said as quoted by upstream oil, gas regulator BPMIGAS? website on Thursday that the drilling works, which would be carried out beginning in October was expected to increase the company?s gas production from 25 million standard cubic feet per day (mmscfd) currently to 300 mmscfd.

?We hope the new production target can be achieved in 2012,? he said during a public relations workshop in Malang on Thursday.

Is Nugroho said that the company had rented a Floating Production Unit (FPU) facility from Norway firm BW Offshore to collect gas from the fileds. The FPU facility is provided by a consortium under a 14-year leasing contract worth US$871 million. The facility can receive 340 mmscfd of gas.

According to him, Kangean is also building a 28-kilometer pipeline to distribute gas from the FPU facility to East Java gas distribution networks. ?The construction works will be completed in two months,? he added. (godang)