Kufpec awards Indonesian field contracts

Kufpec Indonesia Ltd. has awarded contracts to a consortium of PT Istana Karang Laut (IKL) and Daewoo Corp. for the Oseil oil field development. The contract covers Phase I engineering, procurement, installation, and commissioning (EPIC) together with an operations and maintenance (O&M) contract for the Phase I production period of approximately 2 years. The lump sum agreement is worth $61.7 million.


SINGAPORE�Kufpec Indonesia Ltd. has awarded contracts to a consortium of PT Istana Karang Laut (IKL) and Daewoo Corp. for development of the Oseil oil field. The contract covers Phase I engineering, procurement, installation, and commissioning (EPIC) together with an operations and maintenance (O&M) contract for the Phase I production period of approximately 2 years. The lump sum agreement is worth $61.7 million.

The Oseil oil discovery within the Seram Joint Venture area in the Maluku Sea is scheduled to come on stream in the first quarter of 2002. Initial production is anticipated at between 12,000-18,000 b/d of oil.

IKL, the lead consortium member, is a privately owned Indonesian company established in 1981 to supply process equipment to the oil and gas industry.

The EPIC and O&M lump sum price comprises engineering, procurement, construction and commissioning of the Phase 1 gathering, processing and export facilities. Project duration of the EPIC contract is anticipated to be 18 months.

Kufpec Indonesia, a wholly owned subsidiary of the Kuwait Foreign Petroleum Exploration Co., is the operator of the Seram Joint Venture. KUFPEC and an affiliate together hold a 92.5% interest. Kalrez Petroleum (Seram) Ltd. holds a 2.5% interest and Canada Northwest Energy (Seram) Ltd. holds 5% interest.

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