According to The Jakarta Post, state-owned Pertamina’s Karunia 1-X exploration well discovered 84 bcf of natural gas on West Java’s Abar block. Pertamina’s upstream subsidiary PT Pertamina Hulu Energi (PHE) has operated the block since May 22, 2015. The operator conducted a 2D seismic survey with a commitment to drill an exploration well within the first 3 years of operation. The gas was discovered in the Miocene Cisubuh and Parigi formations at 2,600 ft.
PHE drilled a total of 17 exploration wells in 2016, discovering 137.91 million boe of contingent resources in West Java. That same year, PHE produced 63,000 b/d of oil and 722 MMcfd of gas.
Last year the Indonesian government implemented new production-sharing terms for oil and gas (OGJ Online, Jan. 20, 2017). The Ministry of Energy and Mineral Resources issued regulations for the new “gross-split contract,” which is based on gross production with no mechanism for cost recovery.
Shares were adjusted for new contracts from government-contractor “base splits” starting at 57-43 for oil and 52-48 for gas. PT Pertamina Hulu Energi signed the first contract under the new scheme, covering an extension of the Offshore North West Java block.
Contact Tayvis Dunnahoe at [email protected].
