Australia-based Tap Oil Limited announced that Mubadala Petroleum, operator of the Manora oil project in the northern Gulf of Thailand, has indicated that the project's development cost is expected to rise by approximately 13 percent from the level forecast at Final Investment Decision (FID) in July 2012.
The total project cost is now adjusted to $278 million, up $32 million from the US$246 million forecast at FID. The revised costs and schedule estimates were attributed to further engineering work, procurement delays, growth in project scope, required design changes and increased cost of construction related to the offshore platform component.
First oil from the Manora development is targeted for mid 2014, compared to the original schedule of early 2014. The Manora oil development is still expected to ramp up to an estimated peak production rate of 15,000 barrels of oil per day from 10 production wells and five injection wells.
“Manora remains a robust project with strong future cashflows. We remain confident that Manora will reposition Tap back to being a significant mid-tier producer within 12 months. With the increase in the expected ultimate recovery from Manora to 9.3 million barrels (net to Tap), the project is expected to generate significant future cashflows for Tap,” Tap’s Managing Director/CEO, Troy Hayden said in a press release.
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