Kambuna delivers gas to Sumatra

Gas sales are under way from the Salamander Energy-operated Kambuna field offshore Sumatra.

Offshore staff

LONDON -- Gas sales are under way from the Salamander Energy-operated Kambuna field offshore Sumatra.

Following mechanical completion and commissioning of all production and process facilities, gas began flowing initially from the Kambuna-4 well on August 5, with gas and condensate heading to the onshore reception facilities at Pangkalan Brandan in northern Sumatra.

Commercial deliveries started today, with gas introduced into the pipeline system for transport to the Belawan power plant.

Partner Serica Energy expects production to build to a peak of 40 MMcf/d of dry gas and around 4,000 b/d of condensate. Once upgrade work on Pertamina’s LPG facility at Pangkalan Brandan has been completed, a further 10% of gas will be produced to allow extraction of LPG from the well stream.

Kambuna’s gas will generate electricity for the city of Medan in northern Sumatra and for industrial users. The gas sales agreement with state electricity utility PLN and Pertiwi Nusantara sets an average price of $5.90/MMcf, rising by 3%/yr.

Serica adds that the capacity of the three production wells is well in excess of 100 MMcf/d, with room in the pipeline and processing infrastructure for further supplies. The partners aim to market further quantities of gas following regulatory approval.

08/11/2009

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