Kambuna inching closer to first gas

Serica Energy expects the leased early production facility for its Kambuna development off northern Sumatra to be on location shortly, followed swiftly by first gas.

Offshore staff

LONDON -- Serica Energy expects the leased early production facility for its Kambuna development off northern Sumatra to be on location shortly, followed swiftly by first gas.

The 58-km (36-mi) offshore and onshore pipeline has been laid and tested. The field’s platform topsides were installed in March and offshore hook-up and commissioning is under way.

Onshore, work is continuing on construction of Kambuna’s gas separation and processing center. Serica expects all these permanent facilities to be completed over the next six to nine months.

Two gas sales contracts have been agreed, with 28 MMcf/d going to Indonesian state electricity utility PT Perusahaan Listrik Negara, and 12 MMcf/d to PT Pertiwi Musantara Resources. The respective contract prices are $5.40/MMcf and $7/MMcf.

In May, the partners also negotiated a third contract with PT Pertamina (Persero) to allow for LPG extraction from the sales gas, starting around year-end. At this point, gas production will be raised by up to 10% to allow all contracted volumes to be delivered.

The partners are lining up a fourth contract to sell at least 10 MMcf/d from Kambuna, lifting the total purchased output to 50-55 MMcf/d in 2010; and a fifth contract for condensate separated from the gas at a rate of 4,000-5,000 b/d.

Offshore Vietnam, Serica has 33/33% of the block 06/94 PSC in the Nam Con Son Basin, operated by Pearl Energy. Subject to approval from the Vietnamese government, Serica will farm out 23.33% of its interest to AWE.

In exchange, AWE will sustain Serica’s one-third share of the costs of a three-well drilling program in 2009-10, subject to a financial cap. The first well, due to spud this month, will be on the Tuong Vi prospect in the block’s south-western part, targeting oil and gas.

06/09/2009

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