Project Profile
Value: Undisclosed
Location: Khorat swell, KB Graben, northern arm of the West Natuna Basin,
Area: Baronang and Cakalang Blocks 5,137 km2 and 4,495 km2 respectively
Water Depth: 50-80 metres
Start-up Year: -
Lundin Petroleum through Lundin Baronang BV and Lundin Cakalang B.V. are the operators and 100% equity holders in the Baronang and Cakalang Blocks, offshore West Natuna, Indonesia. The Baronang and Cakalang Blocks cover 5,137 km2 and 4,495 km2 respectively in water depths of 50-80 m. The Baronang and Cakalang blocks possess all the necessary ingredients for successful oil exploration; including proven reservoirs, seals, structures and an oil generating source kitchen.
Past exploration efforts in the Baronang/Cakalang area focused on dramatic Neogene-aged inversion prospects similar to the producing structures in the Malay and West Natuna Basins. These efforts were unsuccessful. By the late-1990’s, under the shadow of an Indonesian-Vietnam border dispute, exploration in the Baronang/Cakalang Area was abandoned. Current 2- and 3-D seismic mapping identifies several basement drape traps with unrisked oil volumes exceeding 145 MMBO in Baronang and 285 MMBO in Cakalang.
Lundin completed two exploration probes, Balqis and Bonis, at the acreage in 2014. While both encountered good quality reservoirs at the Oligocene level, neither encountered any hydrocarbons, and the probes were plugged and abandoned as dry holes. Lundin subsequently started the process of relinquishing both the Baronang and Cakalang Blocks.
Lundin\'s Baronang/Cakalang Blocks license agreements were signed on 13th November 2008. The license was a Production Sharing Contract (PSC) consisting of an initial three-year exploration period, followed by extensions of three and four years. The initial three-year exploration commitment (Baronang) was for 640 km2 of 3D with two exploration wells. The initial three-year exploration commitment (Cakalang) was for 1,500 km of 2D with no exploration wells. Production splits for both blocks were 75:25 for oil and 60:40 for gas. The Baronang/Cakalang Blocks were located on the plunging nose of the Khorat swell into the West Natuna Basin. The blocks flank the KB Graben, the northern arm of the West Natuna Basin.
Operators (relinquished in 2014):
Lundin Petroleum: Operator with 85% interest
Nido Petroleum: 15% interest
Contractor:
Japan Drilling: Drilling contractor using Hakuryu 11 jackup