Santos says Jeruk field is less economical to develop

PT Santos Indonesia, an Indonesian unit of Australia-listed energy firm Santos Limited said on Tuesday that Santos is evaluating the continuation of its activity in the development of Jeruk field in Sampang PSC, offshore East Java because the project is deemed unfeasible economically

?We remain in the phase of evaluation. In view of the ongoing condition, the field is less economical to develop,? President of Santos Indonesia Marjolijn Wajong said.

Marjolijn said that Santos is coordinating with upstream oil, gas regulator BPMIGAS to determine further measures related to the field, while seeking other special techniques so that the field could become feasible economically.

Meanwhile, BPMIGAS? spokesperson Elan Biantoro said that Santos and its partners have disbursed funds amounting to US$80-90 million to develop the field.

The Jeruk discovery was made in 2003 with the Jeruk-1 exploration well. The discovery was further appraised through the Jeruk-2, ST-4, ST-5 (side tracks 4 and 5) and the Jeruk-3 well from 2004 to 2006.

After 2006, the partners worked towards a commercial development despite the technical complexities of the reservoir. However, there has been no significant progress, hence the current provision.

Singapore Petroleum Corp (SPC) has 21.8 percent economic interest in Jeruk discovery with operator Santos Limited having 45 percent. Other partners in Jeruk are Cue Energy and Medco Energi Internasional. (*)