Serica Energy temporarily suspends production at Kambuna field
Oct 01, 2009 (Datamonitor via COMTEX) --
Company: Serica Energy PLC (SQZZF)
UK-based Serica Energy has announced that production at the Kambuna field, offshore Sumatra, Indonesia, has been temporarily suspended at the request of the gas purchaser PLN. Serica holds a 50% working interest in the Kambuna field.
Commercial sales to PLN, the Indonesian state electricity generator, began in August 2009 and reached 37.9 million standard cubic feet per day (mmscfd) in mid-September 2009.
However, PLN has reportedly experienced problems with the gas turbines at its power station at Belawan and has requested that Kambuna production be temporarily suspended while it undertakes the required maintenance.
The gas sales contract provides that future sales may be made at higher rates than contracted, in order to make up for any production lost while this maintenance is completed.
Taking account of the present shutdown, it is expected that average September sales will be 20mmscfd of gas and 2,100 barrels/day of condensate. To date the average condensate yield has been over 100 barrels per million cubic feet and the heating value of the gas has been over 1,200Btu per cubic foot, both of which are in line with earlier forecasts.
Paul Ellis, Serica's CEO, said: "Although we have had to shut in the Kambuna field just as we were about to reach the 40mmscfd initial contract level, it has been pleasing to note the excellent performance of the wells and the onshore facilities. I am confident that when we resume production we shall soon reach our target gas and condensate rates."
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Company: Serica Energy PLC (SQZZF)
Related terms: ceo, commercial, contract, forecasts, gasoline, indonesia, note, rates, sales, yield
