Lundin reports Indonesian 2005 operation results
Wednesday, February 22 2006 - 07:19 AM WIB
Salawati Island and Basin (Papua)
The net production from Salawati (Salawati Island WI 14.5% and Salawati Basin WI 25.9%) was 2,261 boepd in 2005. First production from the TBA Field offshore Salawati Island is now expected in 2006 following the conversion of a FPSO currently being completed in Singapore. The field will add 1,000 boepd net to Lundin Petroleum. An ongoing programme of development and exploration drilling on Salawati Basin and Island has, despite some exploration success, yielded disappointing results in 2005.
Banyumas (Java)
The Jati-1 exploration well (WI 25%) was spudded in 2005 and is testing a large exploration prospect in an under explored basin onshore Southern Java. The well has reached a total depth of 4,023 meters. Due to drilling problems the well is currently being sidetracked. Following the recent drilling problems Lundin Petroleum decided to plug and abandon the well but Lundin Petroleum?s partner, Star Energy, has opted, under sole risk provisions, to continue drilling. In the event of a successful discovery Lundin Petroleum has the option to buy back into the well by paying a disproportionate level of the Star Energy costs.
Blora (Java)
A further exploration well Tengis-1 (WI 43.3%) will be drilled in 2006 following the resolution of certain land related issues necessary to commence the site preparation operations.
Lematang (South Sumatra)
A heads of agreement in relation to the sale of gas from the Singa gas field (WI 15.88%) has been signed with state gas distribution company PT Perusahaan Gas Negara (PGN) to supply gas to PGN customers in West Java for 10 years starting in 2008. A development plan for the Singa project has been agreed and will be initiated once the gas sales arrangements have been finalised. (*)