Lundin updates Indonesian ops

The following is an excerpt taken from Year end report 2010 of Swedish independent oil, gas firm Lundin Petroleum published on Wednesday (ed).

Salawati Island and Basin (Papua)
The net production to Lundin Petroleum from Salawati (Salawati Island WI 14.5%, Salawati Basin WI 25.9%) was 2,000 boepd for the reporting period.

In December 2010, Lundin Petroleum completed the sale of its Salawati interests to RH Petrogas (RHP). The consideration for the sale was MUSD 37.1 plus an additional MUSD 3.9 in the event of certain future field developments.

Lematang (South Sumatra)
The net production to Lundin Petroleum from the Singa gas field (WI 25.9%) during the reporting period amounted to 400 boepd. Production from the Singa field commenced during the second quarter of 2010. Current gross production from the first production well is approximately 20 million standard cubic feet per day (MMscfd) of sales gas and is restricted by surface facility limitations resulting from higher hydrocarbon liquid production than expected.

Additional liquid removal facilities are planned to be installed and until such time production will remain constrained. Production is expected to increase to a gross plateau rate of 50 MMscfd following further development drilling. The original Singa gas sales agreement with PT PLN (Persero), an Indonesian state owned electricity company, was amended in February 2010 incorporating an increased gas price and to allow PT PGN (Persero), an Indonesian state owned gas distributor, to buy initial production from the Singa field. The gas sales contract with PT PGN (Persero) was signed in April 2010. The average gas price for both contracts is in excess of USD 5 per million British thermal units (MMbtu).

Rangkas (Java)
A 474 km 2D seismic acquisition programme is currently ongoing on the Rangkas block (WI 51%).

Baronang/Cakalang (Natuna Sea)
A 975 km2 3D seismic acquisition programme on the Baronang and Cakalang block (WI 100%) was completed in April 2010 and interpretation is ongoing. In addition a 1,500 km 2D seismic acquisition programme will be completed on Cakalang in 2011.

South Sokang (Natuna Sea)
A new Production Sharing Contract for the South Sokang block was signed in December 2010 (WI 60%). (end of excerpt)