Genting Oil Signs PSC for Indonesian Block

GENTING Bhd’s oil and gas unit has signed a new production sharing contract (PSC) with Indonesia’s oil and gas supervisory body BPMIGAS for the Kasuri Block.

The block was awarded to 95 per cent-owned subsidiary Genting Oil & Gas Limited (GOGL) via Genting Oil Kasuri Pte Ltd (GOKPL), the company said in a statement yesterday.

The Kasuri Block covers an area of 3,534 sq km onshore the Bomberai Peninsula in West Papua and is immediately adjacent to the offshore Tangguh Gasfields. The Tangguh LNG plant, which is located to the north of Kasuri will start selling this gas in liquefied form (LNG) in January 2009.

In early 2007, GOGL undertook a joint study with the Institute Technology Bandung on the Kasuri Block. The results of this and other studies have shown that there are many gas prospects and leads on the Kasuri Block and also some opportunities for oil.

Prior exploration of this area drilled only one relatively shallow exploration well, Bedidi-1 (by Esso in 1979), which went to a depth of 2,194m and found oil shows in Miocene Limestone.

However, since 1979, the area immediately to the north has seen the discovery of “giant” gas fields in deeper and older rocks, and these formations will be the primary target of GOKPL’s planned exploration drilling for the Kasuri Block with the potential to find significant gas resources.

“GOGL is in a unique position to be able to safely, efficiently and rapidly explore the Kasuri Block. GOGL has not only worked in and studied the area for many years, but the company has all the resources necessary to be able to rapidly undertake an extensive exploration programme,” GOGL chief executive Ong Tiong Soon said in the statement.

Exploration works will begin with the acquisition of new onshore 2D seismic coupled with the start of exploration drilling. It is expected that the first prospect, named Asap after a nearby island, will be drilled “as soon as possible”.

In Indonesia, Genting Oil and Gas has interests in three PSCs, namely the Anambas PSC (100 per cent), the Northwest Natuna PSC (100 per cent) and the West Salawati PSC (49.99 per cent).

In addition, the division holds deferred rights with BP Global to long-term cash flows from the Muturi PSC in West Papua.

In China, the division operates an onshore-enhanced recovery oilfield under a petroleum contract with Sinopec. In Morocco, the division is undertaking survey studies at the Cap Juby Heavy Oil Discovery in the Ras Juby Offshore Block to determine its potential.

(c) 2008 New Straits Times. Provided by ProQuest Information and Learning. All rights Reserved.