Unocal says Indonesian projects development continuing

US oil firm Unocal Corp. which is in the brink of merger with Chevron reported Thursday that it was continuing development engineering for multiple oil and gas discoveries in the deepwater Kutei Basin, Makassar Strait.

According to the company the development strategy is to install two new deepwater production-processing hubs, one at Gendalo and one at Gehem. These hubs will process oil and gas production for multiple satellite developments. The initial plans of development for both hubs are currently being prepared for submission to partners and the Government of Indonesia in 2005, said the company in a report filed with US SEC.

Unocal plans to bring Gendalo into production, which has reserves of 1.7-3.7 trillion cubic feet (TCF), into production in 2008 while Gehem, with gross gas reserve of 1.1-2.0 TCF is expected to commence production in 2011, both would supply gas to Badak LNG plant in Bontang, East Kalimantan. The first phase production from Gendalo is predicted at around 300 MMCFD.

Unocal is also continuing to work on evaluation for development feasibility at the Sadewa field, which is a candidate for early natural gas development because of its proximity to the shelf. ?Concept selection work has been completed and detailed design work has begun. The development concept is a natural gas and crude oil development from a shallow-water platform with extended reach wells towards targets in deep water,? the company reported.

Sadewa is expected to come onstream 2007-2008, with earlier report said production potential could reach 300 MMCFD and 20,000 BPD. The field has reserves of 600BCF of gas.

Unocal, which operates several PSCs offshore East Kalimantan sees its exploration activities dwindling this year and next year. ?We want to develop our huge gas portfolio first,? said a Unocal Indonesia spokesperson earlier. He said Unocal planned to drill only 1 exploration well this year and another one next year. (alex)