Project Profile
Value: US$200 million
Location: Prolific Mahakam River delta both onshore and offshore East Kalimantan
Production:6.9mmboe or 75.7bcf in 2015
Start-up Year: 2016
Area: 4,700 square kilometres
The Kutai Production Sharing Contract (PSC), which covers an area of approximately 4,700 square kilometres within the Kutai Basin of East Kalimantan, was awarded to Serica and PT Ephindo in December 2006. The PSC is divided into five blocks located in the prolific Mahakam River delta both onshore and offshore East Kalimantan, adjacent to several giant fields.
In August 2008 Serica farmed-out a 23.4% interest in the PSC to Salamander Energy and in January 2010 farmed out a further 24.6% interest to KrisEnergy. Serica presently retains a 30% interest and operatorship. During 2008, the company completed the acquisition of a new 180 square kilometre 3D seismic survey and obtained about 2,000 square kilometres of the existing 3D seismic date. Serica recently completed a 2D seismic survey in the onshore part of the PSC.
The interpretation of the offshore 3D seismic data revealed several exploration targets. Serica secured the Trident IX jack-up drilling rig to drill the Dambus and Marindan prospects and the rig was mobilised to the Dambus location in August.
The Dambus-1 offshore exploration well was spudded on 4 September 2010. The objective of the well was to investigate the potential for gas and oil accumulations in a stacked sequence of Miocene sands. Dambus-1 was drilled as a deviated well to a total depth of 3,225 metres MD (2,713 metres true vertical depth subsea (TVDSS). Based on the indicative data obtained while drilling, hydrocarbons were encountered in clean sands in the gross interval 2,070-2,102 metres MD (1,787- 1,812 metres TVDSS) and there were indications of further hydrocarbon-bearing sands in an interval below 2,760 metres MD (2,340 metres TVDSS). In order to obtain definitive data on the extent of the discoveries, the well was plugged back and sidetracked and wireline logs, pressure data and fluid samples were acquired. Sidetrack Dambus-1ST was drilled to a total depth of 2,800 metres MD (2,568 metres TVDSS). Excellent quality gas-bearing Miocene reservoir sands were encountered in the interval 2,025-2,047 metres MD (1,795-1,816 metres TVDSS) of which the net gas-bearing sands amounted to approximately 18 metres.
Following an extensive logging and sampling programme in Dambus-1ST, the deeper sands were found to be water bearing. The upper gas-bearing sands alone are not currently expected to be commercially exploitable by themselves and the well was plugged and abandoned. Other prospects and leads exist in the area around Dambus and they will be reviewed in light of the Dambus result. The gas discovery at Dambus will reduce the threshold volume required for the development of any further resources that may be discovered in the immediate area.
The Trident IX drilling rig spudded the Marindan-1 offshore exploration well on 27 October 2010. The objective of the well was to investigate the potential for hyrdocarbon accumulations in a sequence of Miocene sands and carbonates. Marindan-1 was drilled as a deviated well and on 2 December reached a total depth of 3,469 metres measured depth (MD) (3,225 metres true vertical depth subsea). High gas readings and oil shows were recorded in the interval 2,670-3,260 metres MD and downhole logs indicate thin hydrocarbon bearing sand and carbonate reservoirs, but the indicated volume of hydrocarbons present is not expected to be sufficient to justify commercial development and the well was plugged and abandoned.
Operators:
KrisEnergy Ltd: 54.6% interest
Government of Indonesia: 54.4% interest
Contractors:
Transocean: Drilling the Randolph Yost jack-up rig