Lion Energy reports Indonesian oil production, operation
Thursday, October 29 2009 - 04:35 AM WIB
SERAM (NON-BULA) PSC
LION ENERGY LIMITED, through its wholly owned subsidiary Lion International Investment Limited, holds a 2.5% interest in the Seram (Non Bula) Block Renewal Production Sharing Contract. The major shareholder and Operator of the Joint Venture is CITIC Seram Energy Limited.
The block contains the Oseil oilfield which has since initial field start-up in January 2003, produced cumulative crude oil production of 8,420,203 barrels as at September 30th 2009 and 4.201 BCF of natural gas, most of which is utilized to generate electricity on site for the operations.
PRODUCTION
During the quarter crude oil production from the Seram (Non-Bula) Block PSC was 207,884 barrels of crude oil at a daily average of 2,260 BOPD over the quarter.
No HSFO or Naphtha was produced during the month of September 2009, as the decision to permit the Joint Venture a trial sale of crude oil meant that the processing facilities were not required (to process crude oil) and were shut-in at the end of August 2009.
OPERATIONS
Wellservices were carried out on Oseil-11 and Oseil-5 during the Quarter, to replace failed Electric Submersible Pumps (ESP). All wellservices were completed successfully utilizing a contract workover rig.
TRIAL SALE OF CRUDE OIL
In the past, the Seram (Non Bula) Block Joint Venture has been compelled to sell a refined product of its crude oil outside Indonesia because no Indonesian refineries can process the Bula crude oil due to its high sulphur content.
In an attempt by the Operator to reduce costs of the operation, CITIC on behalf of the Joint Venture, applied to the Indonesian regulatory authority (BP MIGAS) to sell crude oil directly overseas. The Indonesian regulatory authority has approved a that sale and it is anticipated a shipment of crude oil will be ready for sale during December 2009. (end of excerpt)