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Apache to Start Production at Balnaves Oil Field by End Q2

Source: Reuters 2/20/2014, Location: Not categorized

U.S. explorer Apache Corp expects to start production at a new oil field offshore northwest Australia by the end of the second quarter, a company spokesman said. Apache has leased floating production storage and offload unit (FPSO) Armada Claire from Bumi Armada to produce light sweet crude from the Balnaves oilfield.

Bumi Armada completed the FPSO's conversion from a very large crude carrier in early February and expects it to start production in April, although Apache's spokesman said it has yet to depart from Keppel Corp's shipyard in Singapore.

Keppel Corp Ltd is the world's top offshore drilling rig builder.

Balnaves has a field life of about 5 years, with production expected to peak at 30,000 barrels per day (bpd), Apache had said on its website. It is located in the Northern Carnavon Basin, about 180 kilometres offshore northwest Australia.

Apache operates the project with a 65 percent stake while Kuwait Foreign Petroleum Exploration Co holds 35 percent.

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