Santos says first oil, gas production from E. Java field further delayed

Australian oil company Santos Limited sees further delays at the Oyong oil and gas development project in Sampang PSC, offshore East Java, the company said Thursday.

The company said in an announcement that first oil from the field is now anticipated in the second quarter of 2007 and first gas in the second half of 2008. Earlier, Sampang PSC partner Cue Energy Resources that first oil from Oyong would be achieved in the third quarter of this year, while gas production would commence mid-2007.

The company did not give detail, but another Sampang PSC partner Singapore Petroleum Company in a July 26 report said it due to the delays in mobilizing the production barge.

Initial oil flow rates from Sampang 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.

Santos operates the Oyong field with 40.5 percent interest. Others participants in the field are Singapore Petroleum Company 36 percent, Cue 13.5 percent, and East Java regional government associated company PT Petrogas Oyong Jatim 10 percent. (alex)