KrisEnergy Ltd. (KrisEnergy or the Company), an independent upstream oil and gas company based in Singapore, announced that the Government of Indonesia has approved the plan of development (POD) for the Lengo gas field in the Bulu production sharing contract (PSC) offshore East Java. Approval of the POD paves the way for the operator, KrisEnergy, to pursue formal negotiations for gas sales agreements with potential offtakers.
The Bulu PSC covers 269 square miles (697 square kilometers) in three separate areas – Bulu A, Bulu B and Bulu C – over the East Java Basin in water depths of 164 to 197 feet (50 to 60 meters). The Lengo gas discovery is located in the Bulu A area and will be developed via four development wells and an unmanned wellhead platform. A 20-inch, 40-mile (65-kilometer) export pipeline will transport the gas directly to shore. Production is anticipated to commence approximately 24 months after the joint-venture partners declare final investment decision and is expected to plateau at 70 million cubic feet per day.
The Bulu PSC lies adjacent to the KrisEnergy-operated East Muriah PSC, which contains the East Lengo gas discovery. The Company plans to drill an appraisal well in the East Muriah PSC and, if successful, to develop East Lengo gas via a single well tied back to the Lengo facilities. KrisEnergy also operates the Sakti PSC, an exploration block adjacent to the Bulu A area, where the Company completed 746 miles (1,202 kilometers) 2D and 154 square miles (401 square kilometers) 3D seismic acquisition programs earlier this year.
Chris Gibson-Robinson, director Exploration & Production commented: “This is our first development as the operator in Indonesia and we have been building up our technical and project management competencies in Jakarta to be ready for this moment. When on stream, the Lengo field will bring the group’s production mix to approximately 52 percent gas versus 48 percent oil. Demand for gas continues to grow strongly across Indonesia and long-term pipeline prices are holding firm despite volatility in the international oil markets. Bulu is the potential aggregation hub for gas into East Java if we are successful in the appraisal of East Lengo and exploration in Sakti.”
KrisEnergy holds a 42.5 percent operated working interest in the Bulu PSC and is partnered by AWE Limited with 42.5 percent, PT Satria Energindo with 10 percent and PT Satria Wijayakusuma with 5 percent.
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