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Serica Temporarily Suspends Kambuna Operations

Source: www.gulfoilandgas.com 9/29/2009, Location: Asia

Serica Energy plc announces that production at the Kambuna field, offshore Sumatra, Indonesia, has been temporarily suspended at the request of the gas purchaser. Serica holds a 50% working interest in the Kambuna field.

Commercial sales to PLN, the Indonesian state electricity generator, began on 11 August and reached 37.9 million standard cubic feet per day (“mmscfd”) on 16 September. However, PLN has experienced problems with the gas turbines at its power station at Belawan and has requested that Kambuna production be temporarily suspended while it undertakes the required maintenance. The gas sales contract provides that future sales may be made at higher rates than contracted, in order to make up for any production lost while this maintenance is completed.

Taking account of the present shutdown, it is expected that average September sales will be 20 mmscfd of gas and 2,100 barrels/day of condensate. To date the average condensate yield has been over 100 barels per million cubic feet and the heating value of the gas has been over 1,200 Btu per cubic foot, both of which are in line with earlier forecasts.

Serica CEO Paul Ellis said:

“Although we have had to shut in the Kambuna field just as we were about to reach the 40 mmscfd initial contract level, it has been pleasing to note the excellent performance of the wells and the onshore facilities. I am confident that when we resume production we shall soon reach our target gas and condensate rates.”

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