OPERATIONS

Faults delay commissioning of Oseil plant

Design faults have delayed the commissioning of the new permanent plant in the Oseil field and contributed to July production grinding to a halt.

Faults delay commissioning of Oseil plant

The Seram Joint Venture, Kalrez 2.5% and KUFPEC 97.5%, have operated the Oseil oilfield since December 2002, with processing taking place through a Temporary Production System (TPS).

In April, wells were diverted to the new Field Facility for commissioning, with production directed to the skim oil tank to build stock until the Main Production Facility was ready to process the crude oil.

The wells have been on-line intermittently depending on the requirements of the commissioning team. As of 23rd June, 2003 the field has been shut-in as the skim oil tank is full.

Average production during June 2003 was 1,645bopd, reflecting the interruptions to production due to commissioning. No production was recorded during July 2003.

The faults in the system were revealed during a HAZOP study of the new plant and until these issues are resolved, commissioning of parts of the plant cannot proceed.

KUFPEC anticipate that the problems will be resolved during the latter part of August 2003.

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