Australia's Anzon plans $1.2 bln Basker expansion
PERTH, July 7 (Reuters) - Oil and gas producer Anzon Australia Ltd AZA.AX said on Monday it expects oil output at its Basker Manta Gummy project off Australia's southern coast to double by 2010 under a A$1.23 billion ($1.18 billion) expansion programme.
Anzon said higher-than-expected reserves justified a larger facility and a more optimal development that was forecast to see oil production double to 20,000 barrels a day and allow the offshore processing of gas.
Anzon said venture partners for Basker Manta Gummy project signed a letter of intent on Friday for a new drilling rig and a floating production storage and offloading vessel (FPSO), which has the capacity to handle higher oil, water and gas rates than its present system.
The operating lease contract for the FPSO, which has a storage capacity to 850,000 barrels of oil, is expected to be commissioned in the second quarter of 2010, Anzon said in a statement.
As part of the expansion programme, Anzon will also drill up six additional wells in the area later this year.
Anzon, operator of the Basker project, holds a 40 percent stake in the venture. Beach Petroleum Ltd (BPT.AX) has a 30 percent interest, while a subsidiary of Japan's Itochu Corp (8001.T) and Sojitz's (2768.T) Australian unit owns the rest. ($1=A$1.04) (Reporting by Fayen Wong)
