Repsol Makes Gas Discovery in Indonesia

Spanish energy company Repsol has made a major gas discovery onshore Central Sumatra.

Indonesia’s upstream regulator SKK Migas confirmed the find at Repsol-operated Sakakemang PSC, according to Wood Mackenzie research director Andrew Harwood.

“Repsol’s Kali Berau Dalam-2 well re-entered after well control problems in late 2018, having targeted the Pre-Tertiary fractured basement play,” Mr Harwood said.

He added that the prospect is estimated to hold about 1.5 trillion cubic feet of gas (more than 250 million barrels of oil equivalent) prior to drilling.

The extent of the discovery is dependent upon further appraisal and Wood Mackenzie estimates anything larger than 300 billion cubic feet would be considered commercial, given proximity to gas infrastructure.

“Besides operator Repsol which holds a 45 percent stake in the discovery, the news is very encouraging for the other PSC partners, including Petronas, which farmed into the block for 45 percent in January 2019, and Moeco which holds ten percent,” Mr Harwood said.

“ConocoPhillips and Pertamina will also be interested in the result, as they look for resource that could extend the life of the Corridor PSC, scheduled to expire in 2023.

“The Corridor PSC is a key supplier of gas to Singapore and West Java, but is expected to see declining output from 2024 – a new source of supply would also be positive news for gas buyers in these markets.”

Mr Harwood also commented that SKK Migas recently strived harder to encourage exploration in Indonesia.

“The Kali Berau Dalam discovery could be the good news Indonesia needs to kick-start its exploration sector.”

Source: Rigzone