Seram production sharing contract signing of phase I development EPIC

KUFPEC (Indonesia) recently awarded a contract to a consortium of PT Istana Karang Laut (IKL) and Daewoo Corporation for the Oseil oilfield development Phase 1 Engineering, Procurement, Installation and Commissioning contract (EPIC) together with an Operations and Maintenance (O&M) contract for the Phase I production period of approximately two years.

IKL, the lead consortium member is a privately owned Indonesian company established in 1981 to supply process equipment to the oil and gas industry.

The EPIC and O & M lump sum price comprises engineering, procurement, construction and commissioning of the Phase 1 gathering, processing and export facilities. Project duration of the EPIC contract is anticipated to be 18 months. Total contract value is US$ 61.7 million.

KUFPEC (Indonesia) Limited, a wholly owned subsidiary of the Kuwait Foreign Petroleum Exploration Company, is the operator of the Seram Joint Venture. KUFPEC (Indonesia) Limited together with an affiliate holds 92.5% interest. Kalrez Petroleum (Seram) Limited holds a 2.5% interest and Canada Northwest Energy (Seram) Limited holds 5% interest.

The Oseil oil discovery within the Seram Joint Venture area, is being developed and is scheduled to come on a stream in the first quarter of 2002. Initial production is anticipated at between 12,000 to 18,000 barrels oil per day, to produce a HSFO and Naphtha product. (*)