Kufpec to commence oil production in Oseil field January 20

Australian oil company Kalrez Energy Limited said Friday its joint venture partner and the operator of Seram production sharing contract (PSC), Kufpec (Indonesia) Limited would commence oil production in the Oseil field on January 20.

Kalrez said it had reported to Kufpec that oil flow from the Oseil oilfield had reached approximately 12,000 barrels per day (BPD) and had resulted in around 79,475 barrels in stock.

Kufpec was anticipated to increase output over the next week and its permanent facilities was expected to be available during April 2003, Kalrez said to the Australian Stock Exchange.

?Commissioning of the Temporary Production System continues as problems associated with foaming of the crude oil and process temperature stabilization continue to cause periodic process disruption,? Kufpec was qouted as saying.

Kalrez said earlier that oil from Oseil would be shipped to Singapore.

Seram PSC is located on Seram Island, Maluku province. Kufpec is the major shareholder of the block with 97.5 percent of working interest, while Kalrez holds 2.5 percent remaining. (robert)