Serica unveils N. Sumatra gas fields? development plan

Canadian firm Serica Energy plc said Thursday that the Kambuna field of the Glagah Kambuna TAC offshore North Sumatra is expected to come onstream in 2008 at an initial rate of 50 million cubic feet of gas per day and 5,000 barrels per day of condensate.

?As part of the development plan we intend to fast track the development of the field using 'dry' wellheads and a Floating Production Storage and Offtake vessel ("FPSO"), which offers significantly lower drilling and production costs than a subsea solution,? chairman Antony Craven Walker told the company?s Annual General Meeting.

Serica holds a 65 percent interest in Kambuna field. The government has recently approved the Plan of Development for the field.

Walker also said Serica planned to construct the infrastructure to deliver the gas to market, and the terms of the gas sales contract are under negotiation. ?We estimate there will be a gas market shortfall in North Sumatra of around 100 to 200 mmscfd by 2010,? Walker added.

Serica has said that it was in talks with state oil and gas company Pertamina and state gas distribution firm PGN over the gas sale to PLN?s power plant in Belawan, North Sumatra.

?This is a major step forward for Serica and has the potential to be a material producing asset in the medium to long term,? Walker said, adding that Serica?s Board expects to give full project sanction for development of the Kambuna Field in the near future.

In addition to the Kambuna field development Serica has also submitted a Plan of Development for the Tanjung Perling field in the neighboring Asahan Block which Serica also operates with a 55 percent of working interest.

?We will continue to explore for additional gas supplies to add to the Kambuna and Tanjung Perling developments with nine prospects and leads already identified,? Walker added. (Robert)