Kupfec, partners to commence Seram oil production in 2002

Australian oil firm Kalrez Limited said Wednesday that oil production from Seram production sharing contract (PSC) area in Seram Island, Maluku would commence next year with initial production of between 12,000 to 16,000 barrels per day (BPD) from Oseil oilfield, according to the company?s top executive.

Kalrez? chairman HE Majteles said in a report to Australian Stock Exchange that production would increase to between 40,000 and 60,000 BPD at the end of Phase 2 of the development program. He however, did not disclose when the phase-2 development would be completed.

Kuwait?s Kupfec, the Seram PSC operator, awarded the Phase 1 Early Production Installation Contract (EPIC) of the Oseil field to a consortium of companies led by South Korea?s Daewoo Corporation In October 2000.

The EPIC includes the construction of processing facilities and infrastructure, construction of a mini refinery / stripping plant to process Oseil crude into high sulphur fuel oil (HSFO), naphta and the construction of an export shipping facility to handle 50,000 DWT tankers loading 300,000 barrels per shipment.

Kupfec holds 92.5 percent of working interest in Seram PSC, while Canada Northwest and Kalrez hold 5 percent and 2.5 percent, respectively. (alex)