Santos expects Oyong FEED to begin Q4

Australian oil and gas company Santos Limited said on Wednesday the Development Concept Screening Study for development of Oyong field in the Sampang PSC, East Java had been completed and is under review. The company said Front End Engineering Design (FEED) on the selected development option is expected to begin late in the fourth quarter this year.

Earlier, 15 percent partner in Oyong venture Cue Energy resources said that the preferred development method for Oyong would be to utilize a well head platform and a floating process and storage facility (FPSO).

The Oyong field was discovered in mid 2001 by the Oyong-1 well, which encountered a 110 meter gas column underlain by a 38 meter oil column. The Oyong-2 and -3 wells successfully appraised the field and confirmed its potential for economic development.

Earlier, a Santos senior official said Oyong discovery had 100 million barrels of oil and 100 billion cubic feet of natural gas in place.

Australian oil company Santos Limited is the operator of Sampang PSC, where Oyong field is located with 45 percent participating interest, while Coastal Indonesia Sampang and Cue Energy hold 40 percent and 15 percent, respectively. (alex)