Rick Wilkinson
OGJ Correspondent
MELBOURNE, Sept. 25 -- Santos Ltd.-operated Oyong oil and gas field off East Java has been brought on stream. Production rates are expected to stabilize at 8,000-10,000 b/d over the next few weeks.
Adelaide-based Santos holds 45% interest, while Cue Energy Resources, Melbourne, has 15%, and Singapore Petroleum, 40%.
Oil is being produced via a wellhead platform that houses five oil wells and two gas wells. Oil is processed on the Sea Good 101 production barge and piped to the Shanghai storage and offtake vessel.
Front-end engineering and design studies to develop Oyong gas reserves are now well under way, and a final investment decision is expected before yearend. First gas production is anticipated during first half 2009.
Gas will be piped via a 55 km undersea pipeline to an onshore processing facility to be located adjacent to the existing Grati power station in East Java.
PT Indonesia Power will purchase the gas.
Santos said its nearby Wortel gas field, discovered in 2006 about 7 km west of Oyong, is likely to be incorporated into the gas development program, but that is still subject to further field appraisal, which is planned for first half 2008.
