AWE Selling 50% Stake in AAL Project Offshore Indonesia
- Business & Finance
AWE Limited today announced that it had appointed Credit Suisse as its adviser for the planned sell-down of up to 50% of the Ande Ande Lumut (AAL) oil project, offshore Indonesia.
AWE currently owns 100% and is the Operator of the North West Natuna PSC where the AAL project is located.
The estimated gross recoverable resource for the AAL project is 76 million barrels of oil. AWE has already booked a Contingent Resource (2C) of 43 million barrels which represents AWE’s 100% interest after the Indonesian Government’s share of the PSC.
AWE’s Managing Director, Bruce Clement, said that the development plan and sell-down process were both going according to schedule.
“Over the past 12 months we have made significant progress with preliminary design work for the Wellhead Platform and FPSO Production Facility now complete. This work has been undertaken in parallel with subsurface reservoir evaluation, simulation modelling, and engineering studies which have further optimised the approved plan of development.
“We anticipate completing the sell-down of up to 50% of the project ahead of a final investment decision which is scheduled for the second half of 2013. The sale will crystallise some of the value in the project, which we believe is considerable, and will allow AWE to share development risk while still achieving an excellent rate of return.
“We expect that AAL will attract significant interest from local Indonesian as well as international oil and gas companies and investors,” Clement said.
An independent audit of the oil field’s contingent resources will be undertaken as part of the sale process and binding offers are anticipated in mid-2013.
The AAL project is located in the Natuna Sea, offshore Indonesia, within the North West Natuna PSC. The PSC was acquired, along with the Anambas PSC, in February 2012. The AAL field area is 21km 2 at a reservoir depth of 1,100m subsea (water depth approximately 73m).
January 29, 2013