Indonesia awards offshore Kalimantan block

A joint venture consortium led by operator Kris Energy has signed the offshore Indonesia Tanjung Aru production sharing contract (PSC).

Offshore staff

WEST PERTH, Australia – A joint venture consortium led by operator Kris Energy has signed the offshore Indonesia Tanjung Aru production sharing contract (PSC).

According to partner Neon Energy, the PSC was awarded via tender, following an extended joint study conducted by the consortium in cooperation with Indonesian regulatory authority, MIGAS.

The Tanjung Aru block covers 4,200 sq km (1,621 sq mi) offshore Kalimantan, in water depths ranging from 20-1,000 m (65-3,281 ft). The concession is in a relatively underexplored area of the Kutei basin.

Neon says the JV has identified multiple petroleum plays in shallow water and deepwater, each with the potential for commercial accumulations of gas/condensate and/or oil.

Within the block are two gas discoveries, both drilled by Amerada Hess in 2002.

There are also several leads from existing 3D seismic.

The PSC has an initial three-year term, and carries a work commitment of 500 sq km (193 sq mi) of 3D seismic acquisition and processing. This program will start next year, with a view to delineating prospects for drilling in the (optional) second three-year term, which carries a one-well commitment.

12/21/2011

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