Unocal says West Seno project still on track

Despite slower production, Unocal Corporation is confident that it could achieve production target of around 30,000 to 35,000 barrels of oil equivalent (BOE) per day at its West Seno project offshore East Kalimantan by year-end.

Unocal said Friday that the slower production than anticipated ramp-up in West Seno project was related mainly to the facilities and start-up operations.

"The reservoir is performing as we predicted. We are encouraged by what we see in terms of oil pay thickness and initial well performance, which bodes well for the long-term success of the field,” said Charles R. Williamson, Unocal chairman and chief executive officer, in company’s third quarter 2003 earnings forecast.

West Seno is the first deepwater oil and gas project in Indonesia. Unocal has completed six wells in the field, which are currently producing 17,000 BOE per day, including 15,000 barrels of oil. Estimated actual gross production for the third quarter from West Seno averaged 5,000 BOE per day. Unocal earlier said it expected average production of nearly 20,000 BOE per day from West Seno in the third quarter.

Williamson said that the company is confident that it can achieve the previously stated peak gross production rates of 35,000 to 45,000 BOE per day from Phase 1 and raise the gross output to between 55,000 and 65,000 BOE per day when Phase 2 is completed.

"We will now bring on additional development wells, which will ramp up gross production from the field to 30,000 to 35,000 BOE per day by year-end," Williamson said.

West Seno, located in the Makassar Strait production sharing contract (PSC) area, was discovered by Unocal in 1998. The field lies about 190 kilometers northeast of Balikpapan in water depths of approximately 975 meters.

Unocal is developing the field in two phases with two tension leg platforms (TLP) and a floating production unit (FPU). Phase 1 includes 28 development wells to recover resources in the northern section of the West Seno field. Meanwhile, Phase 2 will include a second TLP and up to 24 additional development wells on the field’s southern section. Production from Phase 2 is expected to begin in 2005.

Unocal operates the PSC and has a 90-percent working interest. Pertamina Upstream, a unit of the state-owned oil and gas company Pertamina, holds the remaining interest. (robert)