Santos says Oyong field to flow gas this month

Gas from Oyong field in Sampang PSC offshore East Java will start flowing this month, operator Australian oil, gas firm Santos Limited said.

Santos said in a presentation released on Friday that engineering and construction for Oyong Phase 2 has been completed and gas would be piped to PLN?s Grati power plant through 60-km pipeline. Grati will get the entire Oyong gas with peak supply estimated at 60MMCFD, according to earlier reports.

Currently, Oyong field only produces crude at a rate of 3,500BPD last quarter.

The company also said that it is currently negotiating plan of development (PoD) of Wortel gas discovery, which is located adjacent to Oyong with upstream oil, gas authority BPMIGAS.

Santos said Wortel field might be tied back to Oyong with first gas targeted early 2011.

In November 2008 Cue Energy Limited, a partner at Sampang PSC said that Wortel has recoverable reserves of between 60-130BCF.

Under the PoD, development would consist of a well head platform on the field, with two deviated development wells, and a pipeline to the Oyong facilities, 7kms to the east, it said.

Santos said in February 2008 that Wortel discovery would be able to produce gas at the rate of 40-60 MMCFD.

Participants in the Sampang PSC are: Santos (Sampang) Pty Ltd (Operator) 45%, Singapore Petroleum Company Limited 40%, Cue Sampang Pty Ltd 15%. (denny)