Santos says Oyong oil project 96% completed

Australian oil company Santos Limited said on Thursday preparation for oil production at its Oyong field in Sampang PSC offshore East Java had approximately 96 percent completed at the end of the second quarter of the year.

 

All development drilling had been completed and the floating storage and offtake vessel been taken to the field, the company said. 

 

Dry dock certification of the leased production barge was completed in June, while sailaway was scheduled for August and first production was expected to occur at the end of third quarter of the year, it added. .

 

Oil production is expected to stand at between 8,000-10,000 barrels per day post commissioning and testing.

 

The front-end engineering design (FEED) studies for the Oyong Phase II gas development are continuing, with first gas production scheduled for fourth quarter of 2008.

 

Santos holds a 45 percent interest in the Sampang PSC and acts as the operator.

 

Meanwhile, production from the Maleo gas field in Madura Offshore PSC continues to be impacted by capacity restrictions in the East Java gas pipeline, which is operated by state owned oil and gas company PT Pertamina, following a rupture on the pipeline in November last year. Gross production from Maleo is now at approximately 70.72 MMCFD, according to the firm.

 

Santos holds 67.5 percent interest in the Madura Offshore PSC, where it acts as operator (denny)