AWE, Santos Progress Development of Indonesia's Ande Ande Lumut Project

AWE Limited indicated that the Northwest Natuna joint venture, its 50-50 partnership with field operator Santos, is progressing development work on the Ande Ande Lumut (AAL) oil project offshore Indonesia, the firm said in its latest quarterly report released Thursday. 

The joint venture is working to contract a drilling rig after giving its approval for the drilling of an appraisal well in the underlying G sand next year. AWE indicated that successful appraisal drilling of the G sand and its subsequent development could add around 35 million barrels of gross recoverable oil to the project’s reserves.

Meanwhile, the front end engineering and design (FEED) work for the AAL project's well head platform is complete. The partners also received approval from the Indonesian government earlier this month to begin the tender process for a floating production, storage and offloading (FPSO) vessel, with completion of the FPSO tendering a critical path for project approval.

Elsewhere in Indonesia's East Java Sea, AWE, as Operator of the Bulu production sharing contract, has completed a draft Plan of Development for the Lengo gas field and has submitted it to the country's upstream regulator, SKKMigas.

Over in Australia, AWE disclosed that a final investment decision (FID) for a heavy lift vessel -- Sapura 3000 -- to install the gas compression and condensate pumping modules on the Yolla platform has been made by the Joint Venture. Installation is planned for late 2014, subject to vessel arrival, while tie-in and commissioning is scheduled to commence in mid-2015, following the completion of drilling activities.

"The upgrade to the platform processing facilities will support increased longer term production from the Yolla field and provide the opportunity for the future development of nearby resources and discoveries," AWE said in the press release.

There are also plans to drill the Yolla-5 and Yolla-6 development wells commencing in January 2015 using the jackup West Telesto (400' ILC), subject to rig arrival.

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