PT Synergy Engineering Bags FEED Contract for East Java's Lengo Gas Field

Singapore-listed KrisEnergy Ltd. (KrisEnergy or the Company), an independent upstream oil and gas company, announced Monday it has awarded the front-end engineering and design (FEED) contract for the Lengo gas development offshore East Java in Indonesia, and has commenced geophysical and geotechnical surveys at the platform site as well as along the proposed platform-to-shore pipeline route and onshore receiving terminal location.

The Lengo gas accumulation is located in the Bulu production sharing contract (PSC), which covers 269 square miles (697 square kilometers) over the East Java Basin in water depths of 164 to 197 feet (50 to 60 meters). The development plan was approved by the Indonesian authorities in late 2014 and comprises four development wells, an unmanned wellhead platform and a 20-inch, 40-mile (65-kilometer) export pipeline to transport the gas to shore. The Company is in negotiations over gas sales and production is expected to begin approximately 24 months after the joint-venture partners declare final investment decision. The field will produce 70 million cubic feet per day at plateau.

Indonesian-based survey contractor, Java Offshore, has commenced the geophysical and geotechnical surveys and PT. Synergy Engineering was awarded the engineering services contract for the Lengo FEED.

Chris Gibson-Robinson, director Exploration & Production commented: “We are making good headway on the Lengo development. The surveys, which include a geotechnical borehole survey at the location of the production facilities, will provide important site-specific data for the next phase of engineering. The FEED will define the wellhead platform, export pipeline and onshore receiving facility for the ensuing engineering, procurement, construction and installation bidding phase.”

The Lengo gas development marks the first step in the Company’s ambitions to create a gas aggregation hub offshore East Java, where it is also the operator of the adjacent East Muriah and Sakti PSCs. KrisEnergy holds a 42.5 percent operated working interest in the Bulu PSC and is partnered by AWE Limited with 42.5 percent, PT Satria Energindo with 10 percent and PT Satria Wijayakusuma with 5 percent.


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