Oyong oil production delayed again

Singapore national oil firm Singapore Petroleum Company Limited said on Wednesday that first oil production from Oyong field in Sampang PSC offshore East Java was delayed again from earlier schedule of late June 2007.

The company said that the block operator Santos Limited has advised that the delay was due to delays in the procurement of equipment in the current tight engineering, procurement and construction services market. This equipment is to be used in the conversion of the Oyong production barge.

?Further updates on the Oyong production will be provided when these become available,? the company said.

The project?s oil production commencement had been delayed several times.

Initial oil production from the field is expected to reach 10,000 BPD, with gas production expected to commence in the second half of 2008.

SPC holds a 40% interest in the Sampang PSC, while Santos and Cue Energy hold 45% and 15%, respectively.(alex)