Four months after project sanction 75% of the A$227 million budget committed and about 40% of the engineering procurement, construction and installation part of the project completed.
There are no outstanding material steel purchases to be made. All primary and secondary steel has been delivered to the jacket and deck fabrication site in Malaysia and all line pipe has been bought and coated.
The Field Development Plan and an application for a Production License have been submitted to the relevant Government authorities in Western Australia and Canberra. Timely receipt of regulatory approvals continues to be an important element of the project's schedule and, in this regard, ROC continues to work closely with the relevant Government authorities.
At the onshore Arrowsmith Plant, 18km south of Dongara, the two onshore pipelines have been fully welded and trenching and laying is about to commence. Horizontal directional drilling of the beach crossings for the pipelines is in progress.
The ENSCO 67 jack-up rig is still scheduled to arrive on site in late October 2005, to install the wellhead platform and deck prior to commencing the drilling of the development wells.
Jacket and deck fabrication has progressed well and remains on schedule for load out during the first half of October 2005.
The accommodation barge and the pipeline lay barge, both presently in Indonesia, have been engaged and are due on site in September 2005.
Other key elements of the Cliff Head project include the manufacture of down hole pumps in the United States, power generators in Austria and pressure vessels and chemical injection equipment in Australia, all of which are also on schedule.
ROC continues to liaise very closely with the local community in and around Dongara and has commenced recruitment of local staff for the operational and maintenance aspects of the production phase of the project. Cliff Head production will be managed by Mr. Barry Ashwin who will be based in Perth. Mr Ashwin has more than 20 years of relevant industry experience mainly in senior production and operating positions with BHP Billiton. Most recently, Mr. Ashwin was Production Manager for Arc Energy's operations in the north Perth Basin.
Commenting on the current status of the project, ROC's Chief Executive Officer, Dr John Doran stated that:
"Until first oil production is achieved, every offshore field development project is best viewed on a one-day-at-a-time basis and the Cliff Head Development Project is no exception. Progress to date has been good, but with less than nine months to go before targeted production start-up we shouldn't gloss over the significant amount of work that still remains to be done. None of the project's 300 workforce, located in various parts of the world, is under any illusion about the importance of this project to the participants – particularly the three small to medium sized Australian companies which collectively own 71% of the project. Everybody will need to stay fully focused if both the schedule and budget are to be achieved".
The Cliff Head Joint Venture comprises Roc Oil as operator with 37.5%; AWE with 27.5%; Wandoo Petroleum with 24%; Voyager with 6% and CIECO Exploration with 55%.
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