Timor Sea oil field

Timor Sea oil field

MELBOURNE (Dow Jones): The Elang/Kakatua oil field development in the Timor Sea is on track to begin production in mid-July, a spokesman for field operators, the Broken Hill Proprietary Co. (BHP), said yesterday.

Production at Elang/Kakatua is expected to peak at 33,000 barrels per day.

The field will be the first development to be completed in the so called Zone of Cooperation in the Timor Sea, which is jointly administered by the Australian and Indonesian governments. Both governments will share tax revenue from the development.

BHP will use a floating production, storage and off-loading vessel, the Modec Venture, to extract oil from three sub-sea wells.

Total commercial reserves in the field are estimated at 29 million barrels, and the operation has a four year life.

BHP holds 42.4 percent of the field and is partnered by Santos Ltd. with 15 percent.