Publications

“... how do you extend your field life without drilling new wells? ... how to improve your field profitability? … how do you face declining in oil and associated gas production but you still expect to get revenue? …how your operational survive in the low oil price?…we definitely find all the answer in Sampang Sustainability Project (SSP)...” In the current low oil price environment, the production of oil from Oyong Field is no longer profitable. Oil production is only contributing 6% of revenue Santos Sampang PSC but the production cost is almost 50% of total production cost. At 2016 production levels an oil price of US$104bbl is needed to achieve a breakeven outcome. As oil production volumes decline in 2017 and 2018 breakeven prices would be US$178bbl and US$225bbl respectively. A do nothing scenario with both gas and oil production (existing combined oil and gas facilities) will reach their economic limit in 2018. The desired outcomes of this project is to stop the current uneconomic oil production and move to a gas only production with an extended the life and value of Santos Sampang PSC with minimal risk and investment. The project scope is to release or demobilization the FPSO & FSO, modify the Oyong well head platform and OPF Grati plant to support gas only production. A small operation camp will be provided at onshore Camplong Shorebase for Operations crews to maintain the Wortel and Oyong platforms. This project is a highly attractive investment as it is almost self-funding over 2017 and 2018, extends the life of the field by more than 2 years, increases 2P reserves by 34%, increases the trading margin of the field by 34%, increases Contractor NPV10 by 23% and increases Government NPV10 by 32%. This project is scheduled to take 16 months starting Decision Support Package approved in July 2016 until the gas only production safely started on 4th December 2017. The project execution was outstanding in term of safety, schedule and the budget. The operational at present is very efficient where Sampang PSC still delivers the same gas rate as before SSP with a more simple process facility, reduced the major risk profile and reduced marine operational.