JAKARTA (Rambu Energy) – AWE Limited, an Australian based oil and gas company, said that the design of the well head platform for Ande Ande Lumut project in North West Natuna PSC, in which the company owns 50 percent participating interest, is “on track”. The FPSO tender process has been restarted under the new Operator, Santos.
It said the Front End Engineering and Design (FEED) for the Well Head Platform (WHP) has been optimized which resulted in a reduction of the weight and facilities rationalization.
AWE said, Santos, as the Operator of the project, has modified the approach to the procurement of the Floating Production Storage and Offloading (FPSO) vessel, moving from a design competition to a FEED study prior to a two stage tender.
The Final Investment Decision (FID) for the project is planned for 2014-2015 fiscal year, following completion of the FPSO tender process. The first oil output is now expected in 2017.
The company noted that the total development costs for the project (K-sand only) are estimated at US$ 800 million with AWE’s share of costs before first oil, including the carry from the sale of a 50 percent interest in the project to Santos, estimated at approximately US$ 150 million.
For three months to March 2014 period, AWE Ltd reported that revenues of US$93 million for the quarter resulted in year to date revenue of US$268 million, up 21% over the previous corresponding nine month period.
Field EBITDAX also increased, with US$61 million posted for the quarter and $178 million for the financial year to date.
AWE maintained a robust balance sheet with a net cash balance of $72 million and undrawn debt facilities of $300 million at the end of the quarter.
The company also provides exploration updates as follows:
- The Operator of the Bulu PSC (AWE 42.5%) is undertaking gas commercialisation studies and is preparing a development concept for the Lengo gas field to be considered by the joint venture.
- The East Muriah PSC (AWE 50%) joint venture has completed the acquisition of the 2D seismic survey over an area of 1,300 km and the data are being processed.
- Farm-out of the North Madura PSC (AWE 50%, Operator) and the Terumbu PSC (AWE 100%, Operator) is proceeding.
In the Titan PSC (AWE 40%, Operator), interpretation of 2D seismic data over 510 km in the northern part of the PSC area has been completed.
- A market study to evaluate the possible commercialization of the gas resource located in the Anambas PSC (AWE 100%, Operator) has been completed and development feasibility is being reviewed.
- Following the submission of AWE’s joint study of Central Sumatra unconventional gas opportunities in 2013, and subject to agreement with the regulator, AWE can formally apply for gazetting the proposed unconventional gas acreage in the next round of applications in the 2014 calendar year.
AWE is an Australian energy company focused on upstream oil and gas and related energy opportunities. The company has built a substantial portfolio of exploration, development and production assets in Australia, New Zealand, the USA and Indonesia that is now providing strong production and cash flow, leading to a period of significant growth.
Established in 1997, the company employs around 100 people and has its head office in Sydney and regional offices in Perth, New Plymouth and Jakarta. Based on its strong technical and commercial foundations, AWE will continue to pursue exploration and development growth opportunities, primarily in Australasia and Asia. (*)