Dart Energy plans to launch CBM pilot project at Tanjung Enim
Monday, October 31 2011 - 05:25 AM WIB
In 2011 the company focuses on drilling three core wells and three pilot wells.
The first well was completed in the first half of 2011. The drilling of the second core well was completed at the end of September 2011.
?Results of the second well were encouraging and Dart intends to proceed with a pilot program in the area. The pilot will consist of drilling 3 pilot wells and drilling is expected to commence in late 2011, which will allow early assessment of the Tanjung Enim production potential,? the company said.
Dart Energy holds 45 percent interest in the block and also function as the operator. PT Bukit Asam and Pertamina hold interest of 27.5 percent respectively.
The Tanjung Enim PSC covers 308 km2 in the South Sumatra basin.
Dart Energy also plans to undertake geological and geophysical studies at its Muralim block in South Sumatera. It plans to drill two core wells in each of the first two years of the exploration period (2011 and 2012).
On the second year (2012), up to three pilot wells are planned subject to initial exploration results.
Muralim is proximate to the Tanjung Enim block as well as the South Sumatra-West Java pipeline that connects to Java, the main gas demand centre in Indonesia.
Conventional gas production in South Sumatra and export volumes to Java are in decline and it is anticipated CBM production will supplement declining conventional reserves.
Dart holds 50 percent interest in the CBM block and also acting as operator. PT Medco Energi Internasional Tbk holds the balance. The Muralim block covers an area of 983km2 in the South Sumatra basin.
The PSC is for a 30 year term, with a 6-year initial exploration and appraisal period.
Indonesia is considered to be one of the most CBM resource rich countries in Asia with estimated resources in excess of 450 TCF. The CBM industry is still at the early exploration phase with the first CBM licence issued only in 2008.
The government awards CBM blocks via a Production Sharing Contract system, through both competitive bidding process and direct awards. Dart Energy secured interests in PSCs in Indonesia via both methods.
Currently, there is still limited production of CBM in Indonesia, but the industry is expected to emerge rapidly as a result of ongoing exploration and appraisal activities at multiple sites across the country.
Dart Energy focuses on two specific regions with attractive technical and business characteristics for CBM in East Kalimantan and South Sumatra. (romel)