Indonesian state-owned energy firm Pertamina and gas exploration and development company Conrad Asia Energy have signed an agreement to co-operate in the provision of gas supply and infrastructure development in two potential resources offshore Aceh, Indonesia.
Conrad and Perusahaan Gas Negara (PGN), the gas subsidiary of Pertamina, will undertake a joint study on the commercialisation of gas resources in two shallow-water fields — the offshore northwest Aceh (Onwa) production sharing contract (PSC) near Meulaboh and the offshore southwest Aceh (Oswa) PSC near Singkil. The firms aim to collaborate on the development and maintenance of possible small-scale infrastructure, and sales and marketing of LNG.
The fields are estimated to contain contingent resources of 214bn ft³ of sales gas, of which 161bn ft³ is attributable to Conrad, in three of the four shallow-water discovered gas accumulations in two PSCs. The net attributable resource is the commercial resource attributable to Conrad after the government fiscal take. The net present value of these resources amounts to $88mn, attributable to Conrad.
Prospective resources identified within the two PSCs amount to 15 trillion ft³ of recoverable gas, of which 11 trillion ft³ are net attributable to Conrad. There are also several multi-trillion ft³ worth of targets which have been identified in deep-water areas, "which are a longer-term focus and which are attracting interest from larger upstream companies", Conrad said.
Conrad holds a 100pc operating interest in the Onwa and Oswa PSCs, which were awarded to the firm in January last year. The blocks cover an area of 20,000km², and each PSC has a 30-year tenure.
Conrad plans to carry out 3D seismic surveys this year at the Onwa field, to better define the resource size and possibly identify new prospects.
The Indonesian government intends to continue optimising the management and utilisation of natural gas as the main alternative energy source in the country's energy transition, Indonesia's ministry of energy and mineral resources (ESDM) said on 4 March.
Indonesia's natural gas reserves are currently greater than its oil reserves, but the country's gas production is expected to drop in the next few years because of the natural decline in existing gas wells, ESDM said.
Existing supply can meet contracted natural gas needs, and if potential supply comes on stream according to plan, it is estimated there is still enough gas to continue meeting domestic needs, the ESDM's oil and gas programme preparation co-ordinator Rizal Fajar Muttaqin said, without specifying timescales.
