First gas from Salamander's Kambuna field

Salamander Energy Plc reported the start up of production from its operated Kambuna gas-condensate field in offshore North Sumatra. 

Salamander, owner of 50% interest in the Glagah-Kambuna TAC of Pertamina EP, told investors today that initial production began from the Kambuna-4 well, which was opened up on August 5th, delivering gas and condensate to the onshore receiving facilities at Pangkalan Brandan, North Sumatra. Commercial sales began on August 11th, with gas being introduced to the pipeline system for transportation to the Belawan Power Plant.

After start up, production is targeted to build to an initial plateau of 40 MMSCFD of dry gas and approximately 4,000 barrels of condensate per day. According to Salamander's statement available to Indonesia Today, upon completion of the on-going upgrade and refurbishment of Pertamina's LPG plant at Pangkalan Brandan, up to an additional 10% of gas will be produced so that LPG can be extracted from the gas stream.

"As the productive capacity of the three production wells has been demonstrated to be comfortably in excess of 100 MMSCFD and with capacity in the pipeline and processing infrastructure for additional gas supply, the Kambuna partners, Salamander and Serica Energy Plc, intend to market additional quantities of gas following receipt of regulatory approval to do so," Salamander said.

The Kambuna gas will be predominantly used for power generation to supply electricity to the city of Medan, North Sumatra. The existing gas sales agreements with PLN and PT Pertiwi Nusantara equate to an average price of US$5.9/MCF, escalated at 3% per annum. The blended price for Kambuna condensate will be set at the Katapa Arbei ICP which has historically traded at a slight premium to Brent.

READ MORE!!!