Novus expects significant revenue from Singapore's project
Tuesday, January 30 2001 - 07:30 AM WIB
Sydney-based oil and gas company Novus Petroleum said it expected to receive significant revenue from the natural gas delivery from the West Natuna area in the South China Sea to Singapore this year.
The company said in a financial statement obtained by Petromindo.Com on Monday that the project, which was officially inaugurated on Jan. 15, "heralded the culmination of Novus' investment in this world-class project."
Novus has 25 percent stake in the Kakap production-sharing contract (PSC), which is operated by Gulf Indonesia Resources, a subsidiary of Canadian firm Gulf Canada Resources.
Gulf, together with British firm Premier Oil, which operate the Block A PSC in West Natuna, and American firm Conoco Inc., which operates the Block B PSC in the same area, has signed a contract to supply gas to Singapore for 22 years.
Under the initial schedule in the contract, the first gas will arrive in July this year, but the three companies could send the first gas late last year following the early completion of the construction of the pipeline for the gas delivery.
"Initial deliveries will be from Kakap and Block A areas, and Novus will earn significant unbudgeted revenues ahead of the scheduled startup in July," Novus's managing director Bob Williams said.
Novus, which has gas and oil operations in Indonesia, Australia, Egypt, Oman, the Philippines, announced on Monday a record revenue of A$200.2 million for the last year ended Dec. 31, 2000.
In Indonesia, Novus has 50 percent shares in the Brantas PSC in East Java, 26.03 percent in the Malacca Straits PSC and 15 percent in the Lematang PSC.
Williams said production at the Wunut field in Brantas PSC had increased last year following the production problem experienced by Beyond Petroleum (BP) on Pagerungan island north of East Java. BP's production facilities on the island caught fire in November last year.
BP supplies gas from the island to state owned petrochemical producer Petrokimia Gresik, state owned gas distributor PGN and state owned electricity company PLN's power plant in East Java.
"As a result of a fire at BP's Pagerungan facility, Wunut gas production has been fluctuating between eight million cubic feet per day (MMCFD) and 24 MMCFD since November to cover the shortfall created by the interruption to BP's supply.
"Whilst the higher gas production levels are not permanent, they have demonstrated the capability of the Wunut facilities," Williams said.
He said Novus planned an aggressive exploration program this year, including plans to drill three exploration wells at the Brantas PSC in the second half of the year. (Bodega)