Serica Energy Share News (SQZ)

Asia focused oil and gas company Salamander Energy said production at its Kambuna field off the coast of North Sumatra has restarted.At present the field is producing at a rate of 10m standard cubit feet per day (scfd) of gas, but this level will be ramped up over the coming weeks.Production at the field had been interrupted after the buyer of gas produced from the field, the Indonesian state electricity generation company PLN, sorted out a fault with its turbines at its Belawan Power Plant.Resumption of gas sales also allows condensate sales to restart. The Kambuna field produces approximately 100 barrels of condensate per million standard cubic feet of gas.The gas sales contract with PLN provides for a contract quantity of 35m scfd for the first twelve months. The field has already produced at rates higher than this so there is the opportunity to catch up on deliveries after the interruption to production.‘Once full production is reached, every effort will be made to deliver in excess of 35m scfd to PLN. Sales of 12m scfd to the second buyer are expected to commence in January 2010 plus a further 4-5m scfd of sales for LPG [liquefied petroleum gas] production,’ said Serica Energy, which owns 50% of the Kambuna field.