Increased reserves push Oyong development forward

An increase in recoverable oil reserves and the soaring oil prices has encouraged the Oyong Field participants, Cue, Santos and Singapore Petroleum, to bring production forward to the third quarter 2005.
Increased reserves push Oyong development forward
Increased reserves push Oyong development forward
Increased reserves push Oyong development forward
Increased reserves push Oyong development forward
Increased reserves push Oyong development forward

The change in plan came after a reserves audit by DeGolyer and McNaughton significantly increased technically proven (1P) oil reserves and technically proven plus probable oil reserves (2P), above those volumes previously assessed.

Field 2P estimates now stand at 99 million barrels with 9.9 million barrels recoverable while 1P recoverable estimates stand at 6.4 million barrels.

“The planned new development will consist of a simple well head structure formed by triangular braced surface well conductors which will extend above the sea surface. Development wells will be drilled through and between the conductors, with up to seven development wells possible through each structure,” said Cue.

Oil and gas will be processed on a nearby moored barge with oil to be exported by shuttle tanker and gas sent by pipeline to the P.T. Indonesia electricity generating station at Grati, East Java. First gas is expected around 2006.

The revised plan of development requires reduced capital expenditure with Cue's 15% share being reduced from US$19 million to US$14.5 million.

In addition, recent analysis of the Mundu Formation reservoir rock properties and consequent revised dynamic reservoir simulation modelling, have indicated that the peak oil production rate could reach 20,000 barrels of oil per day for a six well oil development and should average 9,000 barrels of oil per day for the first two years of production.

Participants in the Sampang PSC are Cue Sampang 15%, Santos (Sampang) Pty Ltd 45% (Operator) and Singapore Petroleum Company Limited 40%.

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