KEI signs FPSO deal for new Kangean oil field output

Kangean Energy Indonesia Limited (KEI), the operator of Kangean PSC, offshore East Java, signed on Tuesday the leasing deal of a floating production, storage and offloading (FPSO) facility with Indonesia-listed shipping firm PT. Berlian Laju Tanker Tbk.

KEI stated that the signed deal will last for a period of 4 years.

The leased FPSO is intended to help facilitate first oil production from the Pagerungan Utara oil development field in October, 2010 with an average of 5,000-7,000 barrels of oil per day.

The FPSO facility can store up to 400,000 barrels of crude oil.

Indonesia-listed oil and gas firm PT Energi Mega Persada (EMP) and the operator Kangean Energy Indonesia Limited (KEI) control 50% working interest in the Kangean PSC. The other partners, Mitsubishi Corporation and Japan Petroleum Exploration Co. Ltd., respectively own 25% working interest.

According to EMP?s president director Imam Agustino, the contract value is worth US$81 million. (godang)