Singgur Mulia, Intec Egis assigned to study development concept of Oyong field

Australian listed oil and gas explorer Cue Energy Limited announced on Thursday that PT. Singgur Mulia, an Indonesian design consultant, had been awarded a contract for a development concept study for the Oyong field in the Sampang PSC offshore East Java, in conjunction with Intec Egis.

Intec is a worldwide company which provides engineering and project management services tothe oil and gas industry.

According to Cue, the study will examine options for developing the Oyong field which is located 8km offshore Madura Island, in 44 meters of water.

The Oyong field was discovered in mid 2001 by the Oyong-1 well which encountered a 110 meter gas column underlain by a 38 meter oil column. The Oyong-2 and -3 wells successfully appraised the field and confirmed its potential for economic development.

Cue said the development concept study will identify a preferred option on which to begin front end engineering design (FEED). The study will be completed no later than July 2002 following which it is expected that the Sampang Joint Venture will approve a development option for the field.

Processing of the 3D seismic survey over the field is continuing, said Cue and the data from this survey will be used in conjunction with ongoing geological and reservoir engineering studies in considering development options for the field which has been estimated by the operator to contain around 90 million barrels of oil in place.

Australian oil company Santos Limited is the operator of Sampang PSC with 45 percent participating interest, while Coastal Indonesia Sampang and Cue Energy hold 40 percent and 15 percent, respectively.(alex)