Genting Berhad announced that its 95% owned subsidiary Genting Oil & Gas Limited (GOGL) via Genting Oil Kasuri Pte Ltd (GOKPL) has signed a new Production Sharing Contract with BPMIGAS for the Kasuri Block in Indonesia. This block was awarded to GOGL by MIGAS following a 'Direct Offer' license round for a signature bonus of US$19 million and a commitment to undertake 5 exploration wells and seismic works.
According to Luluk Sumiarso, the Director General of MIGAS, "For the 5 blocks offered, 27 companies purchased the bid documents. Most of them were interested in the Kasuri block with a total of 16 documents purchased. For the Kasuri block for which GOGL had undertaken a Joint Study, the high commitment was offered by APEC Indonesia and GOGL was willing to match this high commitment and therefore the government decided in favour of Genting Oil."
The Kasuri Block covers an area of 3,534 sq km onshore the Bomberai Peninsula in West Papua and is immediately adjacent to the offshore Tangguh Gasfields (with 14.4TCF of certified proven gas). The Tangguh LNG Plant, which is located to the north of Kasuri will start selling this gas in liquefied form (LNG) in January 2009.
In early 2007, GOGL undertook a Joint Study with the Institute Technology Bandung on the Kasuri Block. The results of this and other studies by GOGL have shown that there are many gas prospects and leads on the Kasuri Block and also some opportunities for oil. Prior exploration of this area drilled only one relatively shallow exploration well 'Bedidi-1' (by Esso in 1979), which went to a depth of 2,194m and found oil shows in Miocene Limestone. However, since 1979, the area immediately to the north has seen the discovery of 'giant' gas fields in deeper and older rocks and these formations will be the primary target of GOKPL's planned exploration drilling campaign for the Kasuri Block with the potential to find significant gas resources.
"GOGL is in a unique position to be able to safely, efficiently and rapidly explore the Kasuri Block," said Ong Tiong Soon, CEO of GOGL. "GOGL has not only worked in and studied the area for many years, but the company has all the resources necessary to be able to rapidly undertake an extensive exploration program."
Exploration works in this highly prospective area will begin with the acquisition of new onshore 2D seismic coupled with the start of exploration drilling after nearly 30 years of no drilling. It is expected that the first prospect, named Asap after a nearby island will be drilled as soon as possible.
"The acquisition of the Kasuri block and its potential opportunities mark a major milestone for GOGL," Mr. Ong added.
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