Salamander Energy received the first oil in the tanks of the Suksan Salamander floating storage and offtake vessel (FSO) at the Bualuang field in the Gulf of Thailand.
|Greater Bualuang work. Image: Salamander.|
The planned upgrade targets a reduction in the operating costs of up to US$25 million of the field’s facilities that includes new power and processing modules that were loaded in 1h 2014. The upgrades double water handling capacity, increase potential production rates, extend the productive life of the field and decrease the day rate of the production vessel by half.
According to Salamander, the Bualuang oil field has undergone six reserve upgrades and is expected to recover 75MMbbl and produce well into the next decade. Further development drilling is planned this year and is expected to average 11,000 to 14,000bbl/d.
“We have upgraded production infrastructure in the Bualuang field on both time and budget,” says James Menzies Salamander chief executive. “The new facilities enhance the value of the field, minimize the risk of future downtime and mean we are well positioned for the next phase in the field’s growth.”
The Rubicon Vantage FSO will depart the field in the coming weeks.
Earlier this year, storms delayed the project when the Rubicon Vantage’s mooring chains came into contact with, and damaged, a production riser. Production was immediately halted and divers completed a full inspection. In February 2014, Salamander announced the damaged risers on the Rubicon Vantage FSO had been repaired and production from the Bualuang field had restarted.
In June, Salamander and Sona Petroleum signed a non-binding heads of agreement to sell an effective 40% working interest in both the B8/38 concession that contains the Bualuang field in the Gulf of Thailand and the surrounding G4/50 concession. The $280 million deal, includes $250 million for a 40% interest in the B8/38 concession and $30 million for a 40% effective interest in the G4/50 exploration concession.
Block G4/50 covers 2900sq km and contains five sub basins with over 60 leads and prospects.
Salamadner owns and operates 100% of blocks B8/38 and G4/50.
Elsewhere, Salamander completed drilling operations on the North Kendang-2 (NK-2) exploration well in its operated South East Sangatta PSC this week in which the hydrocarbons found were considered to be sub-commercial. The well was plugged and abandoned, concluding the drilling program in the North Kutei for Salamander.
Image: Rubicon Vantage FSO