Offshore staff
SINGAPORE — Conrad Asia Energy has signed a memorandum of understanding with Pertamina subsidiary PT Perusahaan Gas Negara concerning Conrad’s two production sharing contracts (PSCs) offshore Indonesia.
The two parties will conduct a joint study into commercialization options for the gas resources in the Offshore North West Aceh (Meulaboh) (ONWA) and Offshore South West Aceh (Singkil) (OSWA) PSCs, initially focusing on the shallow-water discoveries.
They will then seek to cooperate in the development and maintenance of potential small-scale LNG infrastructure and sales of the LNG.
Competent persons reports have estimated 2C contingent resources of 214 Bcf of sales gas in three of the four shallow-water discoveries.
Conrad plans to acquire 3D seismic over the discovered volumes in ONWA, which currently has only 2D lines shot during the 1970s, to improve definition. The new 3D data may also support identification of new prospects nearby.
The vintage 2D seismic contributed to 70% exploration success rates in the Miocene shallow-water carbonates, the company added, with total prospective resources across the two PSCs estimated at 15 Tcf recoverable.
There are several multi-Tcf targets in the deepwater areas that are attracting interest from larger upstream companies. Seismic studies show gas chimneys and flat spots, providing direct indications for the presence of hydrocarbons.
Conrad has continued to identify and assess commercialization options for the discovered resources, with THREE60 Energy expected to complete an independent study later this month.
Miltos Xynogalas, Conrad’s managing director and CEO, said, “There have been a host of major gas discoveries recently announced offshore Aceh, which has brought the region back into international focus for gas exploration companies.
“Our PSCs lie within a proven biogenic gas region containing flow tested gas discoveries, as well as high-impact deepwater exploratory potential. The shallow-water discoveries are of near-term interest for PGN [PT Perusahaan Gas Negara] and appear suitable for commercialization via small-scale LNG plants—an already proven solution for gas deposits of this size elsewhere in Indonesia.”
03.01.2024
