Oseil oilfield on schedule to deliver first oil in July

Australian oil firm Kalrez Energy limited said on Friday that first phase development of Oseil oilfield in Seram (Non-Bula) production sharing contract (PSC) is on schedule to deliver first oil in July 2002, gradually increasing to approximately 12,000 barrels of oil per day before end 2002.

Kalrez said that three wells were scheduled for completion first half of 2002. All three wells will be completed with electric submersible pumps installed on each and are expected to produce at approximately 4,000 barrels per day.

A Main Production Facility (MPF) is being constructed to receive produced crude oil from the producing wells and to distil the product to High Sulphur Fuel Oil (HSFO) and Naptha. Process flow simulation indicates a 92 percent HSFO yield and 8 percent Naptha, said Kalrez in its report to Australia Stock Exchange.

Meanwhile Kalrez said it would drill four shallow development wells at its sole risk in East Coast Seram, which is also located in Seram (Non-Bula) PSC after Kufpec elected not to participate.

The four wells proposed in the program range in depth from 210 metres to 650 metres and the locations are from 16 to 31 kilometers south of Bula and adjacent to the coastline

The Seram (Non-Bula) PSC is operated and 97.5 percent owned by Kuwait Foreign Petroleum Exploration Company (Kufpec), while Kalrez holds the remaining 2.5 percent.(alex).