Program approved to improve oil production at Oyong field: Cue
Tuesday, July 29 2014 - 01:10 AM WIB
Considering continued improved production rates, the Sampang PSC joint venture is said to have approved extension of the contracts for the Oyong production barge and FSO until September 2015.
Australian oil and gas firm Cue Energy Resources Ltd said that a program of well interventions and recompletions, which would take place later this year, has also been approved. ?The planned workovers will improve Oyong oil production with the potential to extend field life beyond the end of 2015,? Cue said in a quarterly report obtained Monday.
Oil production from the Oyong field had been on a natural decline and the previous forecast was that oil production would end in the fourth quarter of calendar 2014, Cue said in its website.
Oyong is one of the three fields within the Sampang PSC, located offshore Madura Island, East Java, which is operated by Australian oil and gas fim Santos Ltd with a 45 percent interest. Cue has a 15 percent interest in the PSC, while Singapore Petroleum Company holds a 40 percent interest. The two other fields in the block are Wortel and Jeruk.
Cue said that during the second quarter of this year, its share of oil sales from the Oyong field was 26,786 barrels which generated A$3.02 million in revenue received. Cue?s share of condensate sales from the Oyong field was 74 barrels which generated A$0.005 million in revenue and its share of gas sales was 267,131 Mcf which generated A$0.784 million in revenue received.
The Oyong average oil production rate for the quarter was 1,465 bopd (gross) and the gas rate was 26.12 MMscfd (gross).
Elsewhere in the report, Cue said that the joint venture has approved the installation of compression at the Grati gas plant in East Java which will ensure that the Wortel fiel project will continue to meet its gas sales contract volumes. ?Installation of the compressors will take place during the Fourth Quarter so that compression is available in early 2015. Gas-lift compressors will also be installed on the Oyong platform offshore,? Cue said
Gas from the offshore Oyong and Wortel fields is transported via a 60 kilometer pipeline to an onshore gas processing facility at Grati in East Java where it is sold for domestic power generation. Oil from the Oyong field is piped to the Surya Putra Jaya FSO (floating storage and offloading) for storage and export, while all gas from Oyong is sold to PT Indonesia Power, a subsidiary of state-owned electricity firm PLN.
Meanwhile, Cue?s gas sales during the quarter were 418,854 Mcf, which generated A$2.87 million in revenue received. Condensate sales were 115 barrels which generated A$0.008 million in revenue received.
Wortel-3 and Wortel-4 both flowed gas at a combined rate of 44.36 MMscfd during the quarter. The combined rate of Oyong and Wortel gas production is currently 70.81 MMscfd (75.77 BBTU/d) (Billion British thermal units per day).
Editing by Reiner Simanjuntak