Wortel gas field development to cost $113m

Australian oil, gas firm Cue Energy Resources Limited said that it and partners estimated capital expenditure of US$113 million to develop Wortel gas field in Sampang PSC offshore East Java.

The company said development approval for the field is expected to be achieved in the third quarter of 2009 with first gas expected in the fourth quarter of 2010.

According to the company, Wortel has recoverable reserves of between 60-130BCF.

Under the plan of development submitted, development would consist of a well head platform on the field, with two deviated development wells, and a pipeline to the Oyong facilities, 7kms to the east.

The block operator Santos Limited said in February 2008 that Wortel discovery would be able to produce gas at the rate of 40-60 MMCFD.

Meanwhile, the company also said that Oyong gas field, which is expected to come onstream in the third quarter of 2009, will produce 40-60 MMCFD of gas.

Oyong is currently producing oil at the rate of around 5,000 BPD.

The participants in the Sampang PSC are: Santos (Sampang) Pty Ltd (Operator) 45%, Singapore Petroleum Company Limited 40%, Cue Sampang Pty Ltd 15%. (denny)