Sampang

Sampang Production Sharing Contract (PSC)

Cue holds a 15% interest in the Sampang Production Sharing Contract (PSC) situated in the Madura Strait, East Java, Indonesia. This PSC comprises two producing fields, Oyong and Wortel gas fields, along with a gas discovery at Paus Biru.

Production

Gas extracted from the Oyong and Wortel gas fields is transported via a subsea pipeline to the Grati gas processing plant, where it is then supplied to PT Indonesia Power as a fuel source for the Grati electricity generation plant.

The Oyong field began its production in 2009, followed by the Wortel field in 2012.

The field's production is ~ 19 mmcfd million cubic feet per day (mmcfd) from two offshore gas fields, Oyong and Wortel, operating under enduring fixed-price contracts.

Development

Opportunities to increase the field production are being progressed by the Joint Venture, including installation of further compression at the Grati gas plant to lower the field pressure, and optimisation of existing wells.

Field operator, Medco Energi Sampang Pty Ltd (Medco), is engaged in ongoing discussions with the Indonesian Government to secure an extension of the Sampang Production Sharing Contract (PSC), which expires in December 2027. Medco has also requested amendments to the terms of the PSC to facilitate the development of the Paus Biru project. Both the extension and the requested changes are essential for enabling the project to proceed to FID.

The Paus Biru development plan involves drilling a single well, installing a wellhead platform, and constructing a 27-kilometre subsea pipeline to connect the gas field to existing infrastructure at the Oyong field. Subject to final approvals, gas production from Paus Biru is expected to commence at a rate of 20-25 mmcfd.

The Sampang PSC Joint Venture partners are: