Seram (Non Bula) PSC is located onshore on the island of Seram, in Eastern Indonesia and has an area of 1,524 km2. The major equity holder and Operator of the Joint Venture is CITIC Seram Energy Limited (51%). Other partners include KUFPEC (Indonesia) Limited (30%) and Gulf Petroleum Investment (16.5%). The block contains the Oseil field and its surrounding structures, whose estimated proved oil reserves(1P) is 1.1 million barrels in total on the basis of current projects as at 31 December 2017. And the average production in the second quarter of 2018 is approximately 1933 bopd.
1.Oseil Field:
The principal field in the Seram (Non Bula) Block is Oseil Fild which was proved to be commerical oil discovery due to 4 exploration wells drilled in the period from 1988 to 2002. The development of the Oseil Field is divided into 3 phases.
Phase 1 development plan was commenced in January 2000, including the acquisition and processing of 3D seismic over the Oseil Field, drilling of well, well completions, installation of production facilities, pipelines, storage facilities, oil export facilities and other supporting infrastructure to operate and produce the wells, and established a commercial market for Oseil crude oil.
Phase 2 development plan was commenced in March 2004, including drilling and completion of additional development wells and expansion of production facilities, pipelines, storage facilities, oil export facilities and other supporting infrastructure to operate and produce the wells. Phase 1 and Phase 2 development covered the Oseil-1/4 and Oseil-2 areas and provided for the drilling of 18 wells, which have been drilled.
Phase 3 development plan was commenced in May 2015,which was reffered as a Plan of Further Development(also as POFD),including the drilling of 10 additional horizontal wells in the Oseil-2 area. A total of 6 wells have been drilled and no new wells have been drilled so far due to cost control program.
2.Lofin Area:
With the final appraisal and development of two Lofin gas wells drilled in 2012 and 2014 , the amounts of contingent reserves and contingent resources of gas initially in place are estmated at 3070 bcf, as well as the recoverable gas and condensate in Lofin field are estimated at 2020 bcf and 18.25 mmbbls respectively.
With the renewal of the PSC, resuming the exploration of the Lofin area is being considered.
Change of rights and interests
On 23 November 2006, CITIC Seram Energy Limited(an indirect wholly-owned subsidiary of the Company)(CSEL) completed the acquisition of a 51% participating interest from KUFPEC,whilst of remaining interest is holded by KUFPEC (30%),Third Party Co holded (16.5%) and Lion(2.5%).
On 31 May February 2018, The application to renew the PSC was approved by the Indonesian government and the PSC participants officially signed the new PSC with the Indonesian government. The current existing PSC will expire in October 2019. The new PSC extends existing rights to explore, develop and produce oil for an additional 20 years until October 2039. Of interest in the new PSC, CSEL will hold 41%,PT petro Indo Mandiri hold 30%,Gulf Petroleum Investment Company KSCC hold 16.5%,PT GHJ seram Indonesia hold 10% and Lion International Investment Limited hold 2.5%.
Expected workload
Expected workload
With the renewal of Seram (Non Bula) PSC, a total of US$48,892,000 will be invested for a firm work commitment on developing Seram (Non Bula) Block during the first five years from 31 October 2019, which is the expiry date of the current contract.
The firm work commitment includes :
Oseil Field: Two additional development wells to increase production.
Lofin Area: Further appraisel of the gas discovery by extended flow testing and 3D seismic over the Lofin structure.
Areas except Oseil and Lofin:The drilling of an exploration well is expected due to numerous low risk undrilled prospects in the remained area of the Seram Non Bula Block.
Company Behavior
Sproule International Limited(Canada): consulting services and resource evaluation.
DeGolyer & MacNaughton (USA)：consulting services and resource evaluation.