Wednesday, February 16, 2011

Kencana ... Feb11

It plans to finance the US$200 million required to jointly develop and operate the Berantai oil and gas field through an equity/debt fund raising exercise.

The detailed breakdown between the various sources of funding has yet to be determined at this juncture, pending completion of the company’s proposed fund raising exercises in its entirety.

Its partner, SapCrest was in discussions with a leading local bank to secure the necessary funding to part-finance its unit, Sapura Energy Venture’s contribution to the cost of development of the Berantai field.

Kencana, SapuraCrest and Petrofac Energy Developments Sdn Bhd were awarded a risk service contract (RSC) by Petroliam Nasional Bhd to carry out the development and production of petroleum resources from the Berantai field. Kencana and SapuraEnergy Ventures will hold a 25% stake each and PED 50%. The total development cost is US$800 million.

Under the RSC, the operating parties shall be jointly responsible to provide a field development plan and secure the funding to extract the petroleum resources from the Berantai field, which is 150km offshore Terengganu.

The development of the Berantai field will involve the provision of one well-head platform with 18wells together with related pipeline linking it to another existing platform anda provision of a floating production, storage and off-loading vessel (FPSO). A second well-head platform is also expected to be installed in a subsequent phase.
The RSC will be for about nine years, starting Jan 31, 2011. The target for first gas is by the end of December 2011 with the first development phase of 18 wells expected to be completed before end of 2012.

The total development cost including for the subsequent phase, to be incurred collectively by the operating parties, is estimated to be US$800 million excluding the FPSO.

No comments: