Seram (Non-Bula) partners asking for contract extension
Wednesday, March 30 2016 - 09:18 AM WIB
The Seram (Non-Bula) PSC partners are working together in presenting to upstream authority SKK Migas, for an extension or renewal of the PSC to permit them to continue oil and gas exploration, development and production beyond the current PSC expiry date of Oct. 31, 2019.
?Obtaining this extension is a key step to allow the Lofin discovery to be commercialized,? Lion Energy Ltd, a partner in the block said in a statement on Wednesday.
On the exploration and appraisal front, the Lofin-2 appraisal well was spudded in October 2014 following extensive geological and engineering review of the 2012 Lofin-1 gas condensate discovery which reached a total depth of 4164m. Lofin-2 successfully reached a total depth of 5686 meters on May 1, 2015, making it one of the deepest well ever drilling in Indonesia, and proved a gas /condensate column of up to 1300 m in the large Lofin structure.
Lion?s contingent resources estimate (2C Best Estimate) for the Lofin discovery is in excess of 2 trillion cubic feet of gas associated with 18.25 million barrels of condensate (on a 100 percent basis) with the company?s 2.5 percent working interest representing a 2C contingent resources of 50 billion cubic feet of gas, associated with 0.46 million barrels of condensate.
?This is a significant discovery; one of the largest in the region in recent times,? the firm said.
Lion, via its wholly owned subsidiary Lion International Investment Ltd, holds a 2.5 percent participating interest in the Seram (Non-Bula) Block PSC, located onshore Seram Island in eastern Indonesia. The major equity holder and operator of the joint venture is CITIC Seram Energy Ltd (51 percent). Other partners are KUFPEC (Indonesia) Ltd (30 percent) and Gulf Petroleum Investment (16.5 percent).
Editing by Johannes Simbolon