Project Details


Oyong Project

PRODUCTION FACILITY

Facility Name	Oyong Fixed Platform	Duty	Gas

Operator	Santos	Current Status	Producing since 2007

Host Type	Fixed Platform	Water Depth	45 m / 149 ft

Dev.Cost	n/a	Region	Indonesia

Location	Sampang Production Sharing Contract

OIL & GAS FIELD

Field Name	Oyong	Discovery Date	Jan 2001

Block	Sampang Production Sharing Contract	Reserve Type	Gas

Current Status	Producing	Production Start	Sep 2007

Water Depth	45 m / 149 ft

Field Name	Wortel	Discovery Date	Sep 2006

Block	Sampang PSC	Reserve Type	Gas

Current Status	Producing	Production Start	Feb 2012

Water Depth	n/a


Description

The Oyong project is located in the Sampang Production Sharing Contract, about 43 miles (70 kilometers) from Surabaya in Indonesia's East Java province. Santos serves as the operator of the project, holding a 45% interest. Partners in the project include Singapore Petroleum Company (40%), and Cue Energy Resources (15%). In October 2000, exploratory drilling began in the region, resulting in the discovery of the Oyong field in the central portion of the block in about 138 feet (42 meters) of water. Oyong In June 2001, Oyong-1 encountered a 361 feet (110-meter) gas column underlain by a 115 to 131 foot (35 to 40 meter) oil column in carbonate grain stone of the Pliocene age Mundu formation. A month later, the Oyong-2 well was drilled, followed by the Oyong-3 well, confirming the commerciality of the field. Santos then decided to develop the field in two phases. First phase of development called for two gas wells and eight oil wells connecting to a wellhead compression platform. The field produces gas at a flow rate of up to 60 MMcf/d and oil up to 10,000 bopd. Oil and gas is processed, and then exported from the moored storage tanker through a 37-mile-long (60-kilometer-long), 14-inch-diameter pipeline to the PT Indonesia Power electricity generating facility at Grati, East Java. Oil production from the first phase of development commenced in September 2007 and gas production commenced in October 2009. The second phase of development started producing in 3Q09, and produces roughly 57 MMcf/d (1.6 MMcm/d). Wortel The Wortel gas field is situated 5 miles (8 kilometers) off the Coast of Madura Island in 148 feet (45 meters) of water in the East Java region of Indonesia. Wortel’s discovery well encountered a 463-foot (141-meter) gas column in the Mundu formation, above a gas water contact. Wortel-2 was then drilled .6 miles (1 kilometer) southeast of the discovery well, reaching a total depth of 4,659 feet (1,420 meters), but failed to encounter significant hydrocarbons in the reservoir. Even though appraisal drilling wasn’t successful, the discovery well was viable enough to commence development. Wortel is estimated to contain recoverable gas volumes of 75 to 130 billion cubic feet. Towards the end of November 2010, Santos made a final investment decision approving the development of the Wortel gas project. Wortel’s development includes two gas wells, a minimum facility wellhead platform and a 6-mile-long (10-kilometer-long) gas pipeline connecting to the existing Oyong wellhead platform. Gas production will then flow through an existing 37-mile-long (60-kilometer-long) pipeline to the onshore gas processing facility at Grati for processing and onward sale. Development costs of the gas project are estimated at US $100 million, and first gas commenced on February 1, 2012. Gross production rates from the combined Oyong and Wortel fields are expected to be about 90 MMcm/d.


Activities


Santos Commences Gas Production at Wortel
Date: Feb. 2012 Type: Pipeline Construction
Santos has commenced gas production at the Wortel field offshore Indonesia. The project includes two gas wells, a minimum facility wellhead platform and a 6-mile (10-kilometer) gas pipeline to the existing Oyong wellhead platform. Wortel’s gas production will then flow through the existing 37-mile (60-kilometer) pipeline to the onshore gas processing facility at Grati for processing and onward sale. Gross production rates from the combined Oyong and Wortel fields are expected to be about 90 MMcm/d.



Santos Ready to Turn on Wortel Taps
Date: Jan. 2012 Type: Status Update
Santos is continuing to develop the Wortel development offshore Indonesia. The project includes two gas wells, a minimum facility wellhead platform and a 6-mile (10-kilometer) gas pipeline to the existing Oyong wellhead platform. Wortel gas production will then flow through the existing 37-mile (60-kilometer) pipeline to the onshore gas processing facility at Grati for processing and onward sale. The Wortel wellhead platform jacket and topsides have been successfully installed. Drilling of the two Wortel wells is complete and the pipeline from Wortel to Oyong is complete and ready to receive gas. Pre-commissioning activities have commenced and first gas is expected by the end of January 2012.



Santos Approves Development of Wortel Gas Project
Date: Nov. 2010 Type: Status Update
Santos made a final investment decision approving the development of the Wortel gas project in the Sampang PSC, East Java, Indonesia. Wortel's development includes two gas wells, a minimum facility wellhead platform and a 6-mile-long (10-kilometer-long) gas pipeline to the existing Oyong wellhead platform. Gas production will then flow through an existing 37-mile-long (60-kilometer-long) pipeline to the onshore gas processing facility at Grati for processing and onward sale. Development costs of the gas project are estimated at US $100 million, and first gas is expected towards the end of 2011. Gross production rates from the combined Oyong and Wortel fields are expected to be about 90 MMcm/d. Santos serves as the operator of the project, holding a 45% interest. Partners in the project include Singapore Petroleum Company (40%), and Cue Energy Resources (15%).



Santos Gets OK to Develop Wortel Field
Date: Dec. 2009 Type: Status Update
Indonesia's government has approved plans to develop the Wortel gas field offshore East Java, Indonesia. It is estimated the field holds recoverable reserves in the amount of 150 Bcf of gas, which Santos plans to exploit in 2011. Santos already produces oil and gas from the Oyong field, which is also located in the Sampang block. The Oyong field currently produces about 3,500 bopd, and about 50 MMcf/d, supplying a power plant in East Java for state electricity firm PLN.



Cue Energy Fires Up First Gas from Indonesia's Oyong Field
Date: Oct. 2009 Type: Production Start
Australia's Cue Energy Resources began producing its first gas from the Oyong oil and gas field offshore east Java in Indonesia. The gas is being transported through a 37 mile (60 kilometer) pipeline from the offshore production facility to the onshore processing plant at Grati. It is then metered and supplied to PT Indonesia Power for electricity generation under an existing gas supply contract for the whole of the gas from the field.



Oyong Project Expected to Commence Production in Q309
Date: Apr. 2009 Type: Status Update
Oyong, located in the Sampang Production Sharing Contract, offshore East Java, was developed in two phases, with the second phase planning to commence production in Q309. In Phase 2 of development, gas will be exported via a 34-mile (55-kilometer) pipeline to an onshore gas processing facility. The field is expected to produce roughly 57 MMcf/d (1.6 MMcm/d).


Status History

Oyong Fixed Platform

Producing - Sep 24, 2007 to - First oil production commenced 24 September 2007 and first gas in the second half of 2009.
Wortel

Producing - Feb 01, 2012 to -
Under Development - Dec 2009 to Jan 31, 2012 A Wortel plan of development has been approved by the Indonesian authorities and FEED studies are underway. Wortel development is expected to be approved by the join venture in 3Q 2010 with the gas being produced through the Oyong facilities, with first gas around 3rd quarter 2011.
Appraisal Drilling - Sep 27, 2006 to Oct 09, 2006 Wortel-2 was drilled 1 kilometer southeast of Wortel-1 to appraise the discovery. The well was plugged and abandoned at a total depth of 1,420 metres after failing to encounter significant hydrocarbons or reservoir.
Discovery (Drilled) - Sep 07, 2006 to Sep 26, 2006
Exploratory Drilling - Aug 16, 2006 to Sep 06, 2006 Wortel-1 had hit a 141-metre gross gas column in the early Pliocene Mundu formation and flowed 18.5 million cubic feet per day of gas through a 56/64-inch choke.
Oyong

Producing - Sep 24, 2007 to - First oil production commenced 24 September 2007 and first gas in the second half of 2009.
Discovery (Drilled) - 2001 to 2001 The Oyong field was discovered in 2001 by the Oyong 1 exploration well.

Austral-Asia O&G Developments