Petronas-Repsol JV makes largest gas find in Indonesia in 18 years

UOB Kay Hian Research analyst Kong Ho Meng said while there have not been any large tenders awarded by Petroliam Nasional Bhd (Petronas), it expected contracts to be rolled out from next year. In Malaysia, he said, about 11% or about 35 of the over 300 platforms have been operating for over 40 years, and more than 200 wells have already been identified to be plugged and abandoned.

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) and its joint venture partners Repsol and MOECO have made the largest gas find in Indonesia in 18 years in the Sakakemang block in South Sumatara.

Repsol said on Wednesday the KBD-2X well provides preliminary estimation of at least 2 trillion cubic feet (TCF) of recoverable resources.

“The find is the largest discovery in Indonesia in the past 18 years and represents new resources for the Indonesian market that will help fuel economic development,” it said.

“The discovery is also among the 10 largest finds worldwide in the last 12 months,” it said. 

Repsol, as operator, holds a 45% working interest while Petronas owns 45% and MOECO the remaining 10%.

Repsol’s said its exploration strategy is geared toward maximising use of gas as a low-carbon alternative for power generation, a key driver in the energy transition.

“The company will continue the exploratory work in the coming months with an additional planned appraisal well. Repsol has cooperated closely with SKK Migas on the exploration activity carried out in the block and continues to work on next steps with Indonesian authorities,” Repsol said.

Indonesia is the focus of Repsol’s exploration investments in Southeast Asia. Repsol holds severals licences in Sumatra, both onshore and offshore, and plans to execute an intense drilling and seismic acquistition campaign in 2019 and 2020.

Repsol has made more than 50 hydrocarbon discoveries during the 2007-2019 period. Ten have ranked among the largest hydrocarbon finds worldwide in their respective years, demonstrating Repsol’s exploratory abilities. More than half of these discoveries are already in production.

Repsol produced 15 million barrels of oil equivalent in 2017 in Indonesia, mainly from the asset known as Corridor. Repsol owns mineral rights to six blocks: five exploration blocks and one in production/development.