KUFPEC’s Oseil field recommences production

Australian junior oil company Lion Energy Ltd. said on Tuesday production from Oseil field in Seram Island, Maluku had recommenced on April 18, after all wells were shut down on March 5, 2004 to repair skimmer oil tanks leak.

Lion said the shut down on March resulted in minimal production of 14,789 barrels for March, with cumulative production until March 31, 2004 amounted to 1.6 million barrels.

The company also said Indonesian upstream oil, gas authority BP Migas had approved Oseil phase II Plan of development on March 26, 2004. Phase II development involves infield development drilling expected to commence this July, which is expected to bring the field’s production to 18,000 barrels per day by the end of the year.

Lion said in April 9, 2004, a lifting of 296,000 barrels of Oseil HSFO was completed with departure of the tanker to a Singapore refinery.

Lion holds 2.5 percent working interest in Seram (Non Bula) PSC, where Oiseil field is located. The remaining working interest is held by operator Kuwaiti’s KUFPEC. (alex)