West Atlas - Keppel Corporation

First oil at Oyong field
With the production barge Sea-Good 101 (in the background) on location, Oyong is set for first oil
Singapore Petroleum
Company Limited (SPC) has
begun oil production at the
Oyong field of its Sampang
Production Sharing Contract
(Sampang PSC or the Block)
in Indonesia.
Mr Koh Ban Heng, SPC’s
CEO said, “First oil at
Oyong is a significant event
for SPC. It is the company’s
second producing asset, and
affirms our strategy to
develop existing discoveries.
“With Oyong coming onstream,
our current oil
production will be more than
doubled and contribute
positively to SPC in the
longer term.”
After the initial ramp-up,
gross production at Oyong is
expected to stabilise at
between 8,000 and 10,000
barrels of oil per day (bopd).
SPC’s 40% interest will be
between 3,200 and 4,000
bopd.
In addition, SPC and its
partners are also developing
the Oyong gas reserves.
Front-end engineering
design for the development
of the gas reserves is
currently underway, with first
gas production expected in
2009.
Under a gas sales
agreement with PT Indonesia
Power, the gas will be
transported via a 55km
pipeline to an onshore
processing facility adjacent
to the Grati Power Station in
East Java.
The Wortel gas discovery,
also located in the Sampang
PSC, approximately 7km
west of Oyong, could
potentially be incorporated
into the Oyong gas
development. Further
appraisal of the Wortel
Business 7
discovery has been planned
in the first half of 2008.
At SPC’s Kakap Production
Sharing Contract (Kakap
PSC), light oil (44º API) had
been discovered at the
Pancing-1X exploration well
(Pancing-1X). However the
discovery is non commercial
and the well has been
plugged and abandoned.
The rig will immediately
move to drill the KG West-1
gas development well, about
4km east of Pancing-1X.
It is expected that this well
will be drilled to 4,260 feet
measured depth. keppelite
Keppelite I September 2007