Serica expects Kambuna production to stop in early 2013
Wednesday, November 14 2012 - 08:30 AM WIB
UK oil and gas firm Serica Energy said it is estimated that production at the Kambuna gas field in Glagah-Kambuna Technical Assistance Contract (TAC) offshore North Sumatra to die down early next year, marking the end of its economic cycle.
The projection is based on the rate of production decline over times. During the third quarter, the field produced at an average rate of 14.3 mmscfd, a dive from 36.4 mmscfd produced in the same period in 2011, with approximately 836 bpd of condensate as against 2,342 bpd a year earlier.
Average prices realized during the quarter for gas and condensate sales respectively were US$6.56 per mcf (Q3 2011: US$6.1 per mcf) and $108.1 per barrel (Q3 2011: US$116.9 per barrel). The highest price achieved during 2012 is $130 per barrel, achieved in March.
It said that during this final phase, the timing of field handover to PT Pertamina and hence the remaining volume of reserves to be produced, are dependent both upon commercial considerations and termination arrangements. A final adjustment to the asset carrying value may be made in the company?s full year accounts, it added.
Serica has a 25 percent working interest at Glagah Kambuna TAC.
Editing by Dadan Wijaksana