In a statement yesterday, Cue said the joint venture had secured the Seagood 101 production barge, belonging to PT Pulau Kencana Raya, to take delivery of oil from the Sampang production sharing contract field, located in 45m of water, offshore East Java.
With modifications currently underway, the vessel is expected to be ready to take first Oyong oil by mid-year at an initial rate of 10,000 barrels per day.
On its website, Santos flagged first gas from the field in the second half of 2008.
In July 2003, the JV partners agreed to sell state-owned PT Indonesia Power all the gas produced from the field.
Then in April 2005, the Indonesian Government approved a revised plan of development for early oil production, allowing the JV to sanction the project and start development.
The Oyong field was discovered in 2001 by the Oyong-1 exploration well.
Stakeholders in the Sampang PSC are Santos (operator with 40.5%), Singapore Petroleum (36%), Cue (13.5%) and PT Petrogas Oyong Jatim (10%).
