Offshore staff
SYDNEY, Australia --Cue Energy Resources says the Santos-led partners have approved the Sampang Sustainability Project (SSP) offshore Java, Indonesia.
Subject to government approvals, the Oyong andWortel fields will be converted for gas production, with uneconomic oil production ceasing.
Santos’ forecasts based on implementation of the SSP reveal an increase of 2P reserves of around 17 bcf can be achieved.
The switch to gas-only operations will likely occur next September, allowing both the FPSOSeagood and the FSO Surya Putra Jaya to be decommissioned the following quarter.
This should reduce annual production costs from around $50 million in 2016 to $22 million by 2018.
Oyong and Wortel’s reservoirs are in structural and structural/stratigraphic trap closures in the Mundu formation. There are more prospects in this formation, and a well could be drilled on the Paus structure in 2018.
Assumingdrilling goes forward and is successful, Paus could be tied back through the Oyong facilities, extending the gas production from the Sampang PSC for several more years.
9/22/2016
