Indonesia awards frontier license

Indonesia’s government has awarded offshore exploration licenses to three European oil companies.

Offshore staff

JAKARTA, Indonesia – Indonesia’s government has awarded offshore exploration licenses to three European oil companies.

Statoil has won operatorship of the 8,000-sq km (3,089-sq mi) Halmahera II block in eastern Indonesia. The permit is in a frontier basin with no wells drilled nearby. Statoil has an 80% interest, the remainder held by Niko Resources.

If ratified, this will be Statoil’s sixth new license award in Indonesia in 2011. It is adjacent to the company’s Obi and Halmahera-Kofiau licenses.

BP has secured 100% of two oil and gas PSCs in the offshore Arafura Sea, West Aru I and II. Both are around 500 km (310 mi) southwest of the company’s North Arafura PSC and 200 km (124 mi) west of the Aru island group, in the Maluku province.

West Aru I extends over 8,100 sq km (3,127 sq mi) and West Aru II PSC over 8,300 sq km (3,204 sq mi). In both cases, water depths are in the range 200-2,500 m (656-8,202 ft).

BP expects to start seismic operations on the blocks shortly.

Finally, Eni has picked up two concessions. In the West Papua Province (East Indonesia), Eni has a 100% interest in the 5,386-sq km (2,079-sq mi) Arguni I PSC offshore and onshore the Bintuni basin. The block is 10 km (6.2 mi) east of the Tangguh LNG processing complex. The work program calls for acquisition of 2D and 3D seismic and drilling of two wells during the first three years of exploration.

In the offshore East Kalimantan Province, Kutei basin, Eni has been named operator of the 2,432-sq km (939-sq mi) North Ganal PSC. The company heads a consortium that includes Niko Resources, Statoil, and GDF Suez.

North Ganal block is adjacent to Eni’s Jangkrik and Jangkrik North East discoveries.
The work program here calls for drilling of one well and acquisition of 200 km (124 mi) of 2D seismic during the first three years of exploration. Around 80 km (50 mi) to the west is the Bontang LNG processing facility.

As operator of the Muara Bakau PSC, Eni has already presented a Plan of Development for the Jangkrik field to the Indonesian authorities. It calls for a fasttrack development that should be onstream in 2015. GDF SUEZ is partner in the JV.

11/22/2011

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