Oyong production vessel contract awarded

Australian oil firm Cue Energy said that the contract for the Oyong field production vessel in Sampang PSC, offshore East Java has been awarded to local company PT Pulau Kencana Raya.

The name of vessel is the Seagood 101 production barge. Currently, the vessel is being modified in Batam for service, Cue said in statement on Tuesday.

The vessel is expected to be operated by June 2007 and to take delivery of first oil by the end of June at an estimated initial rate of 10,000 barrels of oil per day, Cue added.

Initial oil flow rates from Oyong field are likely around 10,000 barrels of oil per day, while gas production rate will be between 40 and 60 million cubic feet per day, Cue said in April 2006.

Australian oil firm Santos is the operator of Sampang PSC with 40.5 percent interest, while SPC, Cue Energy and PT Petrogas Oyong Jatim hold 36 percent, 13.5 percent and 10 percent, respectively. (denny)