SYDNEY (Yosefardi) – In Indonesia, AWE has completed the transition of operatorship for the Northwest Natuna PSC including Ande Ande Lumut project to Santos Limited and it is working closely with Santos to progress the FPSO contracting process.

AWE sold 50% interest in the Ande Ande Lumut oil project for US$188 million to Santos in November 2013. For exploration, AWE plans to drill a potential well.

For exploration and appraisal segment, The Bulu PSC joint venture has approved the operator’s proposed 2014 work program and budget that comprises FEED and gas commercialisation studies for the Lengo gas field.

A one year extension of the PSC exploration period has been approved by the regulator. AWE holds 42.5% interest in the Bulu PSC.

The East Muriah PSC (AWE 50%) joint venture approved the acquisition of a 2D seismic survey over an area of 1,300 km2 to better define several prospects and leads.

Farm-out of the North Madura PSC (AWE 50%, operator) and the Terumbu PSC (AWE 100%, operator) continues, with a number of local and international companies finalising their evaluations. The North Madura joint venture is currently evaluating options to drill an exploration well or acquire 3D seismic data.

In the Titan PSC (AWE 40%, operator), interpretation of 2D seismic data over 510 km2 in the northern part of the PSC area is under way.

A market study to evaluate the possible commercialisation of the gas resources located in the Anambas PSC (AWE 100%, operator) has been completed and the development feasibility is being reviewed.

Following the submission of AWE’s joint study of Central Sumatra shale gas opportunities in 2013, and subject to agreement with the regulator, AWE may formally apply for gazetting the proposed shale gas acrage in the next round of applications in the first half of the 2014 calendar year.