Lundin reports Indonesian H1 activities

Swedish independent oil firm Lundin Petroleum reported on Wednesday that the company?s first half of 2005 net production from Salawati Island JOB (14.5 percent interest) and Salawati Basin PSC (25.9 percent interest) in Papua province reached 2,300 bopd.

The company said that first production from the TBA field offshore Salawati Island has been delayed due to equipment availability but is still expected to come onstream in the second half of 2005 and is forecast to add 1,000 boepd net to Lundin Petroleum production.

The further exploration drilling in Salawati Basin and Island has yielded disappointing results, said the company without giving specific detail. Both blocks are operted by PetroChina.

The company also said The Jati-1 exploration well in Banyumas PSC, Central Java will be spudded in August 2005. Lundin Petroleum?s costs of the exploration well will be funded by Star Energy in accordance with a farm-out agreement concluded in 2004. The Jati-1 well will test a large exploration prospect in an underdeveloped basin onshore Southern Java. Lundin has 25 percent interest and operatorship in the block while ConocoPhillips and Star Energy has 50 percent and 25 percent, respectively.

The company also reported that negotiations for a gas sales agreement in relation to the Singa gas field in Lematang PSC, South Sumatra are progressing slower than forecast. A development plan for the project has been agreed and will be initiated once gas sales arrangements have been finalized. Lundin has 15.88 percent of working interest in Lematang block, while operator PT Medco E&P and Serica Energy Corporation hold 74.12 percent and 10 percent, respectively. Medco had signed preliminary deals to sell Lematang gas to steel maker PT. Krakatau Steel, state gas distribution firm PGN and state electricity firm PLN.(alex)