Santos to cease E. Java crude production
Wednesday, June 7 2017 - 05:18 AM WIB
Australian oil, gas firm Santos Limited will stop crude production from Oyong field in Sampang PSC, offshore East Java due to the field?s declining production.
Fatar Yani, Deputy operations of upstream authority SKK Migas told Petromindo.Com that the field?s production shut down will be executed on June 12, 2017. ?Crude production operation is stopped because it?s no longer economically viable,? he said.
Separately, Santos Indonesia VP SCM and Business Support told Petromindo that gas production from the field will continue.
?Crude production has declined sharply from more than 10,000 BPD when the field started operation in 2007 to around 500 BPD currently. The best option is to stop crude production, discharge the FSO and FPSO this year and focus to gas production,? Hanni said, adding that the move will cut costs and extend Oyong?s commercial lifetime.
Santos is operator of DSampang PSC with 45% interest. Singapore Petroleum Co. has 40% and Melbourne-based Cue Energy Resources Ltd. has 15%.
Editing by Alexander Ginting