Cue Energy Resources Ltd has advised that as part of its strategy of delivering disciplined growth through attractive opportunities in Indonesia, and subject to final government approvals, the Sampang Joint Venture [Santos 45% (operator), Singapore Petroleum Company 40%, Cue 15%] has approved the SSP. This initiative will involve switching the Oyong and Wortel Fields to a gas only production system and ceasing uneconomic oil production. Operator production forecasts based on implementation of the SSP show an increase of 2P reserves of ~17 billion ft3 associated with the extended life of the Wortel and Oyong fields.
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 US$50 million in 2016 to about US$22 million by 2018. 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.
Near term exploration potential
For more information, please visit : http://www.cuenrg.com.au
Adapted from a press release by Louise Mulhall
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/22092016/cue-energy-announces-sampang-field-life-extension-offshore-indonesia/