Genting discovers 6TCF of gas in Papua after spending more than $500m

By Alexander Ginting & Godang Sitompul

Malaysian firm Genting Energy will spend US$600 million until 2015 on Kasuri exploration block onshore West Papua and has been successful to discover more than 6TCF of gas and oil in the block.

Genting Oil Kasuri General Manager Nara Nilandaroe told Petromindo.Com in an interview on Wednesday that the company has since 2009 drilled 7 exploration wells in the block and is currently waiting for the test results of two wells.

Genting has discovered gas through drilling of Asap-1X, Asap-2X, Asap-3X and is currently waiting for the test results of Asap-4X. According to Nara, the Asap-4X well also contained oil discovery.

Earlier, the company has drilled Merah-1X which located right below Tangguh LNG production facility and is currently undertaking 3D seismic to understand the potential of the discovery. Aside from gas, Merah discovery also contains significant volume of condensate, said Nara.

The company is also in the process of drilling Kido-1X well, which has reached total depth of 5,386 meter, the deepest onshore well in Indonesia. Tests are on going in the well with indication of oil and gas, Nara said.

Nara declined to give detail about Kasuri?s gas reserves, but earlier in the same day, SKKMigas chairman Johannes Widjonarko told reporters that Asap and Merah structures has gas recoverable gas reserves of 6 TCF.

Nara said Genting has also last year drilled Rajawali-1X well to the depth of around 4,000 meters but failed to conduct test due to tight formation. Genting plans to resume drilling in the future by using artificial fracturing technique as gas indication was apparent.

Another well called Bedidi Deep, which will spud later this month, will close Genting?s exploration phase in Kasuri, which will end in 2015. ?Until now, Genting has invested more than $509 million on Kasuri,? he said.

Nara said Genting will prepare first PoD on Kasuri block based on Asap and Merah structure. ?Most probably, Kasuri will be producing gas, condensate as well as crude oil,? he said.

Nara said several scenarios are currently being studied for Kasuri gas commercialization, including feeding petrochemical and fertilizer complex which will be developed in the vicinity of the area and setting up an LNG plant. He, however, dismissed plan to supply Kasuri gas to be processed at Tangguh LNG, which is located immediately adjacent to Kasuri block.

Nara expects to submit PoD for Kasuri development in the fourth quarter of this year or early next year.

Genting has 100 percent interest in Kasuri block.