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AWE secures approval from Indonesian govt to start FPSO tender for AAL project

JAKARTA (Rambu Energy) – AWE Limited, Australian-listed oil and gas company, said it has secured approval from the Indonesian government to begin the tender process for the Floating Production Storage and Offloading (FPSO) vessel for its Ande Ande Lumut oil project.

“Completion of tendering for the FPSO is on the critial path for project approval,” AWE said in a media statement.

The company has earlier revised the FPSO tender process after the company s0ld 50 percent its interest in the Northwest Natuna PSC, in which the Ande Ande Lumut (AAL) oil project is located, to Santos Limited.

It said the Front End Engineering and Design (FEED) work for the well head platform is complete. In late October.

Furthermore, AWE has also approved the drilling of an appraisal well in the underlying G sand in 2015. The company is now working to secure a drilling rig for the well.

“Successful appraisal drilling of the G sand and its subsequent development could add an estimated 35 million barrels of gross recoverable oil to the project’s reserves and create substantial additional shareholder value,” it said.

AWE expects first oil from the Ande Ande Lumut project to come out in late 2017, delayed from early plan of 2016. The AAL initial production rate is expected at above 25,000 bopd.

The Ande Ande Lumut oil field is estimated to contain 76 million barrels of recoverable heavy oil. The company has drilled three exploration and appraisal wells.

As for its unconvential oil and gas exploration in Sumatera, AWE said the processes and regulatory framework are awaiting final approval from the government.

AWE expects that the Directorate General for Oil and Gas at the Energy and Mineral Resources Ministry (Dirjen Migas) may offer the Jembar-Rimba Area, onshore central Sumatra, as a direct offer block.

AWE recently completed a Joint Study of this area and would have the right to match any offer submitted for the block. (*)

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