Gurdip Singh
Special Correspondent
Australia
ADELAIDE, Australia -- Australia's Puffin light oil field is expected to begin production by mid-year. David Dix, chairman of AED Oil Ltd., told reporters at the Australian Petroleum Production and Exploration Association annual conference in Adelaide the concession holders have already sold 1.2 MMbbl of oil for delivery in September.
Production will begin through an FPSO-based system in the North East-1 area of the field, Dix said. The rest of the field is being appraised, targeting 200 MMbbl of oil, which was forward sold at $70-$71/barrel prior to production.
"We are hoping to produce as much as 100 MMbbl of light crude oil from the field," Dix said. Six new leads have been identified in the field, in 75-105 m (246-345 ft) water depth off Western Australia, Dix said, adding that a concurrent exploration and development drilling program would be continued from October 2007.
Dix said AED expects to start production in late June or mid-July, but conceded that the challenges of progressing the development depend on the availability of equipment and machinery.
4/17/2007
