Santos stops E. Java crude production
Wednesday, June 14 2017 - 04:22 AM WIB
Australian oil and gas firm Santos Limited has recently stopped crude production from Oyong field in Sampang PSC, offshore East Java, due to the field?s declining production rate.
Santos Indonesia VP SCM and Business Support Hanni Denalda said to Petromindo.com Wednesday that the field?s production shut down was executed on June 10, 2017.
Upstream authority SKK Migas said earlier that crude production at the field has been stopped because it?s no longer economically viable.
Hanni, however, said gas production from the field will continue.
?Crude production has declined sharply from more than 10,000 bopd when the field started operation in 2007 to around 500 bopd currently. The best option is to stop crude production, discharge the FSO and FPSO this year, and focus on gas production,? Hanni said, adding that the move will cut costs and extend Oyong?s commercial lifetime.
Santos is the operator of Sampang PSC with 45 percent interest. Singapore Petroleum Co. has 40 percent interest, and Melbourne-based Cue Energy Resources Ltd. holds the remaining 15 percent.
Editing by Reiner Simanjuntak