Project Profile
Value: Undisclosed
Location: 50 kilometres north of the Bontang LNG plant, Kalimantan, Indonesia
Reserves: 37.7 Bcf of 3P reserves, 273 Bcf of 2C resources and 192 Bcf of prospective resources
Area: 77 km2
Start-up Year: 2011
The Sangatta West block covers 77 km2 and is located in Kalimantan, Indonesia, approximately 50 kilometres north of the Bontang LNG plant. There are a number of active coal mines in proximity to the PSC area. The block is subject to a 30-year PSC. IGas purchased Dart Energy as a farmin to Sangatta West block in eastern Kalimantan in February 2009 for a 24% interest and operated jointly with Ephindo, also with 24% interest (now in 2016 at 48%). Indonesian national oil company Pertamina holds the remaining 52% interest in the block, which originally covered 1,301 sq km but has since been reduced to 1,168 sq km through a mandatory 10% relinquishment.
The Sangatta West block saw first production in 2011 when Dart Energy Ltd. drilled the SCBM No. 1 in February of that year to 830m, which flowed gas at an unspecified amount. SWCI sells gas to a local electricity generation company, for supply of power to the local township of Sangatta. First gas sales were made in 2012. As at 31 December 2011, NSAI estimated 37.7 Bcf of 3P reserves, 273 Bcf of 2C resources and 192 Bcf of prospective resources at Sangatta West. The longer term strategy is to transport gas to the Bontang LNG plant, which is currently operating under capacity, and achieve LNG export-linked gas prices.
Operators:
Sangatta West CBM Inc. (Joint Venture Consortium): Operator with 48% interest
PT Pertamina Hulu Energi: 52% interest
Contractors:
Netherland, Sewell & Associates, Inc. (NSAI): Geological and engineering consultancy services (reserves estimation)