JAKARTA (Rambu Energy) – AWE Limited, an Australian listed oil and gas company, said that it will revise the floating, production, storage and offloading (FPSO) tender process for Ande Ande Lumut project in second half of 2014 fiscal year.
The revision was undertaken after the company sold 50 percent its interest in the Northwest Natuna PSC, including the Ande Ande Lumut (AAL) oil project in North West Natuna PSC, to Santos Limited.
AWE said earlier that both the company and Santos are focusing on contracting plans for the leased FPSO, which is a critical path activity to final investment decision (FID) and first oil.
AWE also said that it has made a substantial progress on front-end engineering and design (FEED) work for the wellhead platform. “Wellhead platform FEED is nearing completion,” the company said in a presentation material.
The company expects the FID, which will set out the total investment required to develop the wellhead platform, to be completed in mid-2015. It will then be followed by wellhead platform construction.
AWE expects first oil from Ande Ande Lumut project to come out in late 2017, delayed from early plan of 2016. The AAL initial production rate is expected at above 25,000 bopd.
It added the joint venture (AWE and Santos) considers to carry out G-Sand appraisal well in fiscal year 2015. This, it said, will require a separate plan of development (PoD) to develop.
The company expects further reserve upside potential in G-Sand (35 million barrels of oil gross recoverable oil and net 2C 8.4 million barrels of oil to AWE).
The company also expect to carry out more exploration activities in the AAL PSC acreage.
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, the company said earlier.
AWE is an Australian energy company, focusing on upstream oil and gas and related energy sectors. The company has portfolio assets in Australia, New Zealand, the USA and Indonesia. (email@example.com)