KUFPEC delays sales process of Seram PSC

Kuwait Foreign Petroleum Exploration Company (KUFPEC) has recently decided to delay the process of identifying a joint venture partner for its interest in the Seram (Non-Bula) production sharing contract (PSC) on Seram Island, Maluku province.

According to KUFPEC?s divestment advisor Waterous & Co, KUFPEC will be initiating its Phase II development drilling campaign in the Oseil oil field beginning from the second/third quater of 2004.

?Waterous and KUFPEC expect to restart the sales process during the second half of 2004,? the advisor added.

Seram PSC was initially awarded in 1969 and, following relinquishments thereafter, currently comprises an area of 7,620 square kilometers. The block contract also has been extended for a period of 20 years as of October 31, 1999.

Average production during June 2003 was 1,645 barrels of oil per day (BOPD).

KUFPEC owns and operates a 97.5 percent interest in the PSC, while Australian-based junior oil producer Lion Energy Limited (former Kalrez Energy Limited) holds the remaining 2.5 percent.

According to Lion Energy, KUFPEC has presented that the phase II would involve the drilling of up to 15 new wells, beginning with five wells in 2004. ?The operator has also projected that production levels at the field producing at a rate near 18,000 BOPD by end 2004 for the following 5 years,? Lion Energy said. (robert)