BP seeks to sell part of interest in E. Java, Papua exploration blocks

Anglo-American energy giant BP PLC. is offering working interest in its production sharing contract (PSC) exploration blocks offshore East Java and in Bintuni Bay, Papua, and has listed its offer in Indigopool.Com, an upstream marketplace website owned by Schlumberger.

BP is offering to farm-out, on a promoted basis, a minority working interest in the Bawean-1 PSC offshore East Java, with potential opportunity to equalize equity with the adjacent Muriah PSC (containing the Kepodang gas field), pending approval of the development and given an economic discovery in the Bawean 1 PSC, said Indogopool. Currently, BP Indonesia holds a 100 percent working interest in both concessions.

The Bawean-1 PSC is located in offshore East Java, near Bawean Island, and approximately 110 km northeast of the recent BP Kepodang Field gas discovery.

BP Indonesia has identified exploration gas prospect named 'Titan', as well as several other potential gas leads. The Titan prospect has been defined by high quality 3D seismic and is located in approximately 270 feet of water, with bright seismic gas anomalies in the Middle Miocene at -2100 feet subsea, analogous to the Kepodang Field. Estimated gas in place for the prospect is around 600 billion cubic feet.

Bawean-1 PSC firm work commitments include the drilling of two exploration wells, a remaining 3D seismic commitment of approximately 325 km2 within the first 3 years of the contract.

BP also seeks to offer for farmout to a selected group of companies undivided interests of up to 40 percent in the West Arguni, East Arguni and Bomberai (Babo) exploration PSCs which lie adjacent to the Wiriagar, Berau and Muturi PSC's containing the Tangguh Field complex. BP currently holds an 80 percent interest in each of the three Exploration PSC's while its partners, Inpex in the West and East Arguni PSC's and Kanematsu Petroleum in the Babo PSC, hold 20 percent, respectively.

The Arguni and Babo PSCs are located immediately to the south of the Berau, Muturi and Wiriagar PSCs, which with their 18 trillion cubic feet (TCF) of certified gas reserves provide the underpinning for the Tangguh LNG project.

Located in the migration pathway to the Tangguh gas accumulations to the north, the Arguni and Babo blocks offer exploration potential. 15-20 TCF of mean unrisked reserves have been identified in prospects and leads in the blocks on offer. Being analogs to discoveries in the neighboring blocks to the north, several of the prospects and leads are moderate risk and will be further derisked by 2002 seismic acquisition currently in progress on the West Arguni PSC. (alex/robert)