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Indonesia approves Lengo development

5th January 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The government of Indonesia has approved the development of the Lengo gas field, offshore East Java, ASX-listed oil and gas developer AWE reported on Monday.

AWE, which holds a 42.5% interest in the Bulu joint venture, which owns the Lengo project, said on Monday that the Lengo gas field was well positioned to supply a strengthening gas market in East Java, where growing demand has helped the gas price remain firm, despite the current oil market volatility.

“The project has considerable momentum and we look forward to working with the operator KrisEnergy to progress to a final investment decision,” said AWE MD Bruce Clement.

The Lego gas field would be developed through four development wells and an unmanned wellhead platform. A 20-inch, 65 km export pipeline would transport the gas directly to shore, and production was expected to start some 24 months after a final investment decision was taken.

The project was expected to plateau at a production level of 70-million cubic feet a day of gas.

KrisEnergy said that with the Indonesian government approving the development plan for Lengo, the company could now pursue formal negotiations for gas sales agreements with potential offtake partners.

Edited by Creamer Media Reporter

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