The Sampang PSC is located in the Madura Straight offshore Madura Island in East Java, Indonesia. It is composed of two producing fields: Oyong oil and gas field and Wortel gas field. The Jeruk oil discovery is still to be developed.
The gross combined average production from Oyong and Wortel for the April to June 2016 quarter was 907 bopd and 66 mmcf/day. Facility studies are ongoing to optimise recovery and extend field gas production from Oyong and Wortel.
Read the recent release on field life extension, click here
Oil production from the Oyong field commenced in 2007, followed by gas production in 2009. Gas produced from Oyong is transported via a 60 km pipeline to the Grati Onshore Gas Facility and sold to PT Indonesia. Oil is piped to a Floating Storage and Offloading (FSO) vessel for storage and export.
During the April - June 2016 quarter Cue’s share of gas sales receipts was $1.79 million from the sale of 184 mmcf. Cue’s share of oil sales receipts was $1.07 million from the sale of 17,286 bbls and condensate sales receipts was $2,466 from the sale of 79 bbls. The Oyong average oil production rate for the quarter was 907 bopd (gross) and the daily gas average rate was 25.37 mmcf/day (gross) (Cue net: 118 bopd and 3 mmcf/day - both net of government take under the PSC).
Following production from Oyong, Wortel gas production commenced in 2012, and is transported through a 7 km pipeline to the Oyong platform where it is sent through the 60 km pipeline to the onshore facilities.
During the April to June 2016 quarter Cue’s share of gas sales receipts was $4.17 million from the sale of 446 mmcf. Cue’s share of condensate sales from the Wortel field was 174 bbls which generated $5,079 in revenue. Wortel-3 and Wortel-4 flowed gas at a combined average daily rate of 41.52 mmcf/day (gross) during the quarter (Cue net 5 mmcfd net of government take under the PSC.)
Extension of the gas production from the Wortel field is being assessed as part of the life extension project mentioned above, to optimise the total production from the Sampang PSC.
The Sampang PSC Joint Venture continues to investigate the potential for development of the Jeruk oilfield which is technically challenging due to high formation pressures, fractured reservoirs and impurities in the hydrocarbons. The main technical issues to be resolved are the range of uncertainty in the size of the accumulation and the connectivity of the fracture network which will control the quantity of oil which may be recovered by each well and the flow rates that can be achieved. Work is currently being carried out by the Operator on possible development scenarios that can maximize the amount of reservoir information obtained from early production.