Santos starts E. Java gas production
Monday, October 2 2006 - 12:39 AM WIB
The US$75 million project will deliver gas to the gas utility, PT Perusahaan Gas Negara (PGN) under a contract which was signed in May 2005.
The Maleo field is located in the Madura Offshore PSC in the Madura Strait, 140 kilometres east of the city of Surabaya in the East Java region of Indonesia. Santos? partners in the PSC are PETRONAS through subsidiary PC Madura,Ltd and PT Pantai Madura.
The field is estimated to contain 240 bcf of Proven and Probable reserves and is expected to generate revenue of approximately US$550 million over the 8 to12 year field life.
Gas will be supplied at a plateau rate of up to 110 million standard cubic feet per day (mmscfd) and is expected to operate at plateau production for approximately 5 years.
First production has been achieved on schedule, only four years from first discovery, and within the original budget estimate.
Gas from the Maleo field is being produced from a Mobile Offshore Production Unit (MOPU) supported by a new six well wellhead platform which is connected to a 7.4 kilometre spur-line to the East Java Gas Pipeline for distribution to the Surabaya and Gresik gas grid.
The MOPU is a converted jack-up drilling rig which was modernised and upgraded in Dubai into a standalone, relocatable gas production facility. It is being leased under a multi-year service agreement with Radiant Utama Interinsco (Indonesia) working with Global Process Systems Inc (Dubai).
Using a modified jack-up rig enabled Santos to achieve first gas only 16 months after final investment approval.
Santos farmed into the Madura Offshore PSC following the Oyong oil and gas discovery made in the adjoining Sampang PSC in August 2001. The Maleo gas field was discovered by the Santos led joint venture in June 2002.
Partners in the Madura Offshore PSC are: Santos (Madura Offshore) Pty Ltd (Operator)67.5%, Petronas Carigali 22.5% and PT Pantai Madura 10.0%. (alex)
