PEARL awards Mengoepeh oil field EPCI contract

Thursday, May 19 2005 - 02:52 PM WIB

Singapore Exchange-listed oil firm PEARL Energy Limited announced Thursday the award of the Engineering, Procurement, Construction and Installation (EPCI) contract for the main production facility for the Mengoepeh oil field development in the Tungkal Production Sharing Contract (Tungkal PSC) contract area onshore in Sumatra.

The EPCI contract was awarded to Indonesian contractor, P.T. Kelsri, following government approval received on 6 May 2005.

Site clearing and construction of the facilities have begun. Installation of the field flow line system is expected to begin 1 June 2005. The main Mengoepeh production facility will have a capacity to process up to 5,000 barrels of oil per day and is expected to start operations late in the fourth quarter of 2005. Initial Mengoepeh output from the existing Mengoepeh-7 well started in December 2004 at a rate of 500 bopd through temporary production facilities.

A second existing well, Mengoepeh-1, was completed in January 2005 and three further development wells, Mengoepeh-9, Mengoepeh-11 and Mengoepeh-8, have been drilled and completed.

The Mengoepeh oil field is currently producing over 1,300 bopd from four wells; Mengoepeh-1, Mangoepeh-7, Mangoepeh-8 and Mengoepeh-9. Mengoepeh-11 will be tied into the temporary facilities soon. Production capacity at the temporary facilities is 2,000 bopd and is expected to reach this level in the next few weeks.

Mengoepeh-5, an existing well, has been re-entered and testing of previously unevaluated zones was completed successfully. Preliminary test data indicates that the well will produce oil and further production testing is scheduled once the well is tied into production facilities later this year.

Additional development wells will be drilled once the full production facilities are completed later this year.

PEARL is the operator of Tungkal PSC.(alex)

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