OPERATIONS

Kalrez waiting on main facilities

Kalrez Energy is eagerly awaiting the completion of construction on the Oseil oilfield production facilities in mid-May to ramp up production from its current rates.

Kalrez waiting on main facilities

Currently the field, part of the Seram joint venture (Kalrez 2.5%, KUFPEC 97.5%), has been running its processing through a 12,000 barrels per day capacity Temporary Production System (TPS) although average daily production has been 5,497 barrels per day.

Production from the oilfield began on December 30, 2002 and the TPS is to be used until the permanent facilities are completed in mid May. Almost 900,000 barrels have been produced to date.

The oilfield development includes the field facility where all well flows are initially received, a pipeline for transmission of the crude oil from the field facility to the main production facility (MPF) where the crude oil is processed into Naptha and High Sulpher Fuel Oil (HSFO) and an export facility for shipment of refined product. The pipeline and export facility are complete and in use.

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