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Santos, Cue Energy extend Oyong production barge, FSO until Sept 2015

JAKARTA (Rambu Energy) – Santos (Sampang) Pty Ltd, a subsidiary of Australian oil and gas company, and its partners Cue Energy Resources Ltd and Singapore Petroleum Sampang (SPC), have approved the extension of the contracts for the Oyong field production barge and floating storage offloading (FSO) until September 2015 after the field shows production rates improvement.

The oil from the Oyong field is processed at the Seagood 101 production barge and loaded onto the Shanghai FSO for storage and export.

Cue Energy said during the quarter ending September, 2014, the Oyong average oil production rate was 1,356 barrels of oil per day (gross) and the gas production rate was 25.79 million standard cubic feet per day (MMSCFD).

Oyong field is located within Sampang block, offshore East Java, near Madura island. Santos, the operator, holds 40 percent interest in the block, Singapore Petroleum Sampang (Pty Ltd) owns 40 percent and Cue (Sampang) Pte Ltd, a subsidiary of Cue Energy, holds 15 percent.

The Oyong field began oil production in September 2007 and gas production started in September 2009. Its gas output was transported from the field to the Grati power plant through a 14-inch pipeline spanning 60 kilometers.

Cue said the operator is planning to carry out interventions and recompletions this month (November). The planned workovers, it said, will improve Oyong oil production and should extend field life. Therefore, the operator of the block, Santos, and its partners considers extending production for an additional 2 years until 2017.

The Sampang block also contains Wortel Field. Cue said the Wortel-3 and Wortel-4 flowed gas reached a combined rate of 43.43 MMSCFD during the quarter. The combined gas production rate of Oyong and Wortel is currently reaching 69.22 MMSCFD (74.07 billion British thermal units per day/BBTUD).

Santos and its partners in the Sampang block had approved the installation of compressed natural gas at the Grati gas plant which will ensure that the Wortel project will continue to meet its gas sales contract volumes. Installation of the compressors, Cue said, will take place during the fourth quarter 2014, so that the compression will be operational in early 2015. (*)

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