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  4. Cue Energy announces Sampang field life extension, offshore Indonesia

Cue Energy announces Sampang field life extension, offshore Indonesia

Published by , Editorial Assistant
Oilfield Technology,

  • Sampang PSC Joint Venture approves proceeding with the Sampang Sustainability Project (SSP) to extend field life by at least two years to 2020 or beyond.
  • Project benefits include reduction in production costs by approx. 50% per annum, a 2P reserve increase of 37% (~17bcf), and margin increase of 34%.
  • Sampang has additional near term exploration potential.

    • 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

  • The existing reservoirs for the Oyong and Wortel Fields are in structural and structural/ stratigraphic trap closures in the Mundu Formation. The joint venture has reviewed other Mundu Formation prospects, including the Paus prospect, which is believed to be a low risk prospect and potentially a drilling candidate in 2018. The joint venture is yet to make a its decision to proceed with this near term exploration potential but if drilling is approved and is successful, Paus could be tied back through the Oyong facilities and further extend the gas production from the Sampang PSC for many years. Cue will keep the market informed of any developments.

    • 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/offshore-and-subsea/22092016/cue-energy-announces-sampang-field-life-extension-offshore-indonesia/

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