Fossil Energy – Indonesia
Indonesia has launched the first of its 2023 licensing rounds, offering three blocks — one of which has giant oil and gas potential – to prospective investors.
The Ministry of Energy & Mineral Resources (ESDM) on Monday unveiled the first batch of acreage up for grabs this year – the Akia, Beluga and Bengara I contract areas (CAs) — all of which are offered under Jakarta’s cost recovery profit sharing scheme.
The Akia CA located off the coast of North Kalimantan is an exploration block with an estimated resource of 2 billion barrels of oil and 9 trillion cubic feet of gas. The block is contiguous to several CAs that have proven hydrocarbon potential, such as Tarakan, Bunyu and Nunukan.
Also offshore is the Beluga CA, that lies off the West Natuna coast. Beluga, which is located near Medco Energi’s producing South Natuna Sea Block B and the Duyung, Natuna Sea Block A, Udang and Kakap blocks that have proven hydrocarbon potential. Beluga has an estimated resource of 360 million barrels of oil and 50 billion cubic feet of gas.
Meanwhile, the Bengara I CA that is located onshore North Kalimantan has an estimated resource of 90 million barrels of oil equivalent of oil and gas. Bengara I lies near to CAs with proven hydrocarbon potential, such as Simenggaris that produces natural gas.
The minimum commitment workscope for the 8394.05-square kilometre Akia block comprises geological and geophysical (G&G) studies plus the acquisition of 750 square kilometres of 3D seismic data, while for both the 8472.44-square kilometre Beluga and 922.17-square kilometre Bengara I tracts the minimum commitment involves G&G studies and the drilling of one exploration well.
The production sharing contracts for these three working areas will use the cost recovery scheme for the exploitation of both conventional and non-conventional oil and gas with a fixed sharing split between the partners (contractors) and the Indonesia government.