KrisEnergy in talks to commercialize gas discoveries
Thursday, April 10 2014 - 05:01 AM WIB
SGX-listed upstream firm KrisEnergy reported on Tuesday that it was in negotiation with East Java potential offtakers for the sale of its gas discoveries in Bulu PSC offshore East Java.
The company did not give detail about the volume of gas it intended to sell, but said that concurrently it is writing plan of development for Lengo gas field.
According to the company, data from the latest Lengo-2 well has been integrated into the geological model and a plan of development for the Lengo gas field is anticipated to be submitted to the regulator in the first half of 2014.
The development concept comprises an unmanned wellhead platform with four to five wells located at Lengo with a possible single tie-back well from the East Lengo gas discovery, 15 km away in the adjacent East Muriah PSC, where the company is also the operator and 50 percent interest holder.
Production is anticipated to commence in the second half 2016 with gas evacuation to market via a 65-km pipeline directly to shore, the company said.
KrisEnergy has 42.5 percent interest in the block with Australian firm AWE also holding the same percentage. The balance is held by two local firms Satria Energindo (10%) and Satria Wijayakusuma (5%).
Elsewhere, the company also reported that it planned to drill one appraisal well in Kutai PSC, East Kalimantan updip to the Mangkok discovery in the second half of 2014, while concurrently writing the plan of development for the gas resources and negotiating with potential buyers of the gas.
KrisEnergy is the operator of Kutai PSC with 54.6 percent interest.
Editing by Reiner Simanjuntak