Santos to Switch Indonesian Fields to Gas-Only Production
Santos and its partners Cue Energy and Singapore Petroleum Company have approved a project to extend the life of Oyong and Wortel fields in Sampang producing area offshore Java in Indonesia.
The Sampang Sustainability Project (SSP) aims to extend field life by at least two years to 2020 or beyond by switching the Oyong and Wortel fields to a gas-only production system and ceasing uneconomic oil production. Santos's production forecasts based on implementation of the SSP show an increase of 2P reserves of roughly 17bn ft3 associated with the extended life of the Wortel and Oyong fields, said Cue Energy September 22.
Cue Energy Indonesia operations map. Land is shown in blue, sea as white (Credit: Cue Energy)
The current project schedule estimates switching to gas-only operations in September 2017 allowing both the floating production storage offloading vessel, Seagood, and the floating storage offloading vessel, Surya Putra Jaya, to be decommissioned in the fourth quarter of 2017. “This should reduce total annual production costs from circa $50mn in 2016 to about $22mn by 2018,” Cue said. “The extension of low-cost gas production from Sampang will provide Cue with continued, stable, positive non-oil linked cash flows which protect the company from low oil prices.”
The Sampang production area is located in the Madura Straight offshore Madura Island in East Java, Indonesia. It is composed of two producing fields: Oyong oil and gas field and Wortel gas field. The Jeruk oil discovery is still to be developed.
Shardul Sharma