Indonesia is set to experience strong drilling activity this year, with more than 200 exploration probes set to be spudded during 2014, while development work is also progressing in terms of potential projects and contract awards for ongoing projects.

Indonesia’s oil and gas industry regulator SKKMigas revealed that the industry is expected to drill 206 exploration wells in the country this year.

“All of the exploration well drillings planned are expected to be realized, as opposed to the previous year where only approximately 130 exploration well drillings were carried out,” SKKMigas acting chairman J Widjonarko said during a parliamentary hearing.

In addition to exploration drilling, the industry plans to conduct 49 seismic surveys in 2014, including the acquisition of 9,020 km (5,605) of 2-D seismic and 11,633 sq km (4,492 sq miles) of 3-D seismic.

Pertamina development drilling

Indonesia’s state-owned Pertamina will spend $400 million on development drilling activities this year as it looks for new oil and gas reserves to help sustain production rates, according to Satoto Agustono, the operator’s director of operation and production.

The $400 million will go toward drilling up to 87 development wells this year, which is lower than the $460 million spent on drilling 111 development wells in 2013.

“Most of the wells are located in the eastern part of Indonesia,” Satoto said, adding that Pertamina also intends to drill 12 to 14 exploration wells, each costing about $15 million.

Pertamina’s oil production is currently around 119,000 b/d, below its 2014 target of 128,000 b/d of oil, while the target for gas is 30.34 MMcm/d (1.071 Bcf/d).

Last year, the company produced 120,600 b/d of oil, less than its goal of 123,600 b/d.

“For gas, we are currently almost at 100% of the target,” Satoto said, adding that Pertamina may review the target pending release of data on first half gas production.

Technip bags Jangkrik work

Technip has been awarded a major subsea contract by Eni for the deepwater Jangkrik development project in the Muara Bakau production-sharing contract (PSC) around 70 km (43 miles) offshore Kalimantan, Indonesia, in the Makassar Strait.

Technip considers a major contract to be worth between $687 million and $1.37 billion.

The contract covers the engineering, procurement, commissioning and installation of 36 km (22 miles) of flexible risers and flowlines with diameters ranging from 4 in. to 14 in.,195 km (121 miles) of pipeline with diameter ranging from 4 in. to 24 in., and subsea equipment that includes mid-water arch and flowline end termination.

Technip also will carry out the installation of 51 km (32 miles) of umbilicals, five manifolds and seven subsea isolation valves (SSIV) subsea structures and associated flying leads. Finally, the project also includes the engineering, procurement and construction of an onshore receiving facility including pig traps, metering systems and utilities.

The project is scheduled to be completed in first-quarter 2017. The field lies at water depths ranging from 200 m (656 ft) to 430 m (1,411 ft).

The flexible pipes will be manufactured at Technip’s Asiaflex Products plant in Tanjung Langsat, Johor, Malaysia. Technip’s S-Lay and heavy-lift vessel, G1201 and its multipurpose installation and construction vessel, the Deep Orient, will be used for the installation.

Meanwhile, FMC Technologies has landed a $720 million contract from Eni to supply subsea systems for the Jangkrik project. The order has an estimated value of $720 million “if the full scope of the award is called off,” FMC said.

FMC’s scope of supply includes subsea trees, manifolds, jumpers and connection systems, umbilicals, tooling and associated topside and subsea controls systems.

The Jangkrik field is located in the Muara Bakau PSC in the Makassar Straits about 70 km from Balikpapan.

Salawati pre-FEED

RH Petrogas has completed testing of the Koi-2 appraisal well in the Salawati Kepala Burung PSC offshore West Papua, Indonesia, with development studies underway.

The Koi-2 well lies in shallow water depth of 32 m (105 ft) within the Salawati Kepala Burung PSC, also called the Island PSC.

The operator finished log analysis and three drillstem tests after the well reached its total vertical depth of 1,428 m (4,68 5ft) Dec. 30, 2013.

Post drill evaluation confirmed that the Koi structure holds estimated recoverable resources of 4 MMbbl of oil net to the group.

The partners in the Island PSC have agreed to conduct a pre-FEED study to evaluate the development design and concept for the field.

In addition, preparatory works will start soon on the field development plan for submission to the authorities, which will incorporate the results of the pre-FEED study.

“We are extremely excited about the successful appraisal of the Koi-2 well. This opens up several analogous opportunities in the offshore area of the Island PSC,” RH Petrogas CEO Francis Chang said. “We are delighted to begin the pre-FEED study and look forward to bringing the project into successful production.”

RH Petrogas has a 33.21% stake in the Island PSC through its wholly-owned subsidiaries Petrogas (Island) Ltd. and RHP Salawati Basin. Indonesia’s state-owned Pertamina has a 50% stake, while state player PetroChina holds 16.79%.

The Island PSC is operated by JOB Pertamina-PetroChina Salawati, which is a joint operating body formed between Pertamina and PetroChina.

West Kerendan-1 hits gas

Salamander Energy reports that the West Kerendan-1 (WK-1) exploration well in Indonesia has reached total depth and has successfully tested gas from the Upper Berai reservoir.

The well will be potentially completed as a future producing well following completion of the testing program.

“Following wireline logging, pressure and sampling programs, Salamander can confirm that gas has been encountered in four zones: Middle Miocene sandstones, Oligocene Upper Berai and Lower Berai formation carbonates and the Eocene Tanjung formation sandstones,” Salamander said.

Following the successful test in the Upper Berai formation, Salamander will open discussions with the Indonesian authorities with a view to including the West Kerendan discovery in the Kerendan field development plan.

This enlarged field development would then form the source of incremental gas sales to the gas-fired power plant that is being constructed adjacent to the Kerendan Field.

Oil, gas flows in Sumatra

Singapore’s Ramba Energy has flowed oil and gas from the Akatara-2 well on the Lemang Block in South Sumatra, Indonesia.

Ramba said the appraisal well flowed oil at an initial rate of 2,300 b/d of oil, along with 153.0 Mcm/d (5.4 MMcf/d) of gas.

The well targeted the Intra Gumai sand formation, Upper Talang Akar formation, Lower Talang Akar formation and the Crystalline basement.

The probe followed on from the successful Akatara-1 well, which hit around 83.5 m (274 ft) of gross hydrocarbon pay and flowed at a rate of 311.6 Mcm/d (11 MMcf/d) of gas and 380 b/d of condensate during testing of the primary reservoir last year.

The Akatara-2 well has now been temporary suspended as an oil and gas discovery.
Ramba has a 51% operated stake in the Lemang Block, while Indonesia’s PT Sugih Energy has 49%.

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