Liquid rich components are removed from the gas onshore and the gas 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. The Oyong field is a simple structural closure with oil and gas contained in the Pliocene aged carbonate Mundu Formation.The field contains approximately 103BCF (P50) of recoverable gas (95% methane). A plateau gas production rate of approximately 60BBtu per day is estimated. This target rate is expected to be reached during October 2009. Oil production will continue alongside gas production.
Cue Energy’s Chief Executive Officer, Bob Coppin states that, “this first gas production for the company represents yet another significant milestone for Cue Energy and adds to our existing oil producing assets in Papua New Guinea Indonesia and New Zealand.
Participants in the Sampang PSC are: Santos (Sampang) Pty Ltd 45% (operator), Singapore Petroleum Sampang Ltd 40% Cue Sampang Pty Ltd 15%.
