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AWE says Lengo gas field development enters final investment decision phase

JAKARTA (rambuenergy.com) – AWE Limited, an Australian listed oil and gas company, said that the development of the Lengo gas project, within Bulu producion sharing contract (PSC) in offshore East Java, is now entering the final investment decision (FID) phase after its plan of development (PoD) has been approved by the Indonesian government.

AWE holds 42.5 percent interest in the Bulu PSC, Kris Energy Ltd which operates the block owns 42.5 percent, PT Satria Energindo owns 10 percent and PT Satria Wijayakusuma holds 5 percent working interest.

“The project has considerable momentum and we look forward to working with the Operator, KrisEnergy, to progress to a final investment decision,” AWE’s Managing Director Bruce Clement said.

“Achieving an approved plan of development for the Lengo gas project in Indonesia is another significant milestone for AWE and underlines the success of our growth strategy and the benefits of our balanced portfolio of assets,” Clement said.

“Lengo is well positioned to supply a strengthening gas market in East Java where growing demand has helped gas prices remain firm despite current oil market volatility,” he noted.

In late December, KrisEnergy Ltd, an independent upstream oil and gas company based in Singapore, announces that the government of Indonesia has approved the POD for the Lengo gas field in the Bulu PSC in offshore East Java.

The approval of the POD paves the way for the operator, KrisEnergy, to pursue formal negotiations for gas sales agreements with potential offtakers.

The Bulu PSC covers 697 square km in three separate areas – Bulu A, Bulu B and Bulu C – over the East Java Basin in water depths of 50 to 60 metres. The Lengo gas discovery is located in the Bulu A area and will be developed via four development wells and an unmanned wellhead platform.

A 20-inch, 65-km export pipeline will transport the gas directly to shore. Production is anticipated to commence approximately 24 months after the joint-venture partners declare final investment decision and is expected to plateau at 70 million cubic feet per day.

AWE Limited is an Australian based energy company focused on upstream oil and gas and related energy opportunities. The company, established in 1997 and listed on the ASX, is headquartered in Sydney with international operating offices in New Zealand and Indonesia. AWE has built a substantial portfolio of production, development and exploration assets in Australia, New Zealand, USA, Indonesia and China. (*)

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