Unocal sees robust Indonesian business

US independent oil, gas company Unocal Corp. sees its Indonesian deep water blocks offshore East Kalimantan a growing major business with plenty of development projects that would increase the company?s future production and large remaining oil and gas potential to be explored.

In his presentation at Lehman Brothers Energy Conference held in New York on Wednesday, Unocal CEO Charles Williamson revealed that after completion of West Seno Phase I, in 2005 the company planned to complete West Seno Phase II and development of Sadewa discovery. In 2006, Gehem discovery might be brought into production and in 2007 Merah Besar and Ranggas discoveries are planned to commence production. Williamson said when necessary, Gendalo and Gada could be developed and commence production at around 2007.

Unocal had just completed West Seno phase I development, which is Indonesia?s first deep-water oil, gas field and is currently producing at around 17,000 BPD. Production is expected to peak at 60,000 BPD and 150 MMCFD when West Seno Phase II development will be completed in 2005. Williamson said Merah Besar was expected to produce around 190,000 BOEPD when completed in 2007.

Unocal had been very successful in its East Kalimantan deepwater exploration and thus far had managed to discover 1.9 billion barrels of oil equivalent.

Williamson added that in 2003-2004 Unocal would take series of exploration and appraisal drillings to add its oil, gas inventory.

Unocal operates several PSCs offshore East Kalimantan and under East Kalimantan Gas Management System supplies natural gas to Bontang LNG plant with current contribution of around 150 MMCFD.

Williamson was optimistic that Unocal?s gas production could be absorbed by Bontang LNG as the plant is expected to be in expansion mode the planned Train I and the growing of spot cargoes for Asian Markets.

He predicted that in 8 years time, Unocal's gas production could be increased to 800 MMCFD-1300MMCFD range. (alex)