Santos buys into Northwest Natuna project offshore Indonesia

Offshore staff

SYDNEY, Australia – AWE Ltd (ASX:AWE) has agreed to sell 50% interest in the Northwest Natuna PSC offshore Indonesia, which includes the Ande Ande Lumut oil project, to a subsidiary of Santos Ltd. (ASX:STO) for $188 million.

The Ande Ande Lumut oil field was discovered in April 2000 and two subsequent appraisal wells were drilled in 2006.  The proposed development plan contemplates a wellhead platform and permanent FPSO. A final investment decision is expected in 2014. Santos estimates gross proved and probable reserves in the interest at 100 MMbbl of oil.

The sale is pending Indonesian regulatory approvals.

AWE increased the estimated recoverable oil in the K-Sand reservoir from 76 MMbbl to 101 MMbbl, with an additional 35 MMbbl (gross 2C contingent resources) assessed in the underlying G-Sand reservoir.

“By leveraging the technical and operating experience gained from Tui and other AWE projects, we improved the facilities design and we were able to reduce the number of wells from 43 to 33 and improve oil recovery by utilizing longer reach horizontal wells,” said Bruce Clement, AWE managing director. “Similarly, the estimated initial production rate has the potential to increase well beyond the 25,000 b/d of oil in the original plan of development.”

“Our Jakarta based team has successfully delivered three offshore developments in recent years – Maleo, Oyong, and Wortel – and is presently working on a fourth at Peluang,” said Martyn Eames, VP Asia/Pacific for Santos.

“Santos also has considerable experience in developing and operating FPSO-based oil projects, most recently with the successful Fletcher Finucane development in Australia, which was delivered ahead of schedule and under budget.

“We are pleased to partner with AWE, which has made good progress in maturing the Ande Ande Lumut opportunity since acquiring a 100% interest in the PSC in early 2012.”

8/21/2013

file

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...