|Tuesday, November 16, 1999
Conoco Indonesia Inc. has made its fifth discovery in the Block B Production Sharing Contract area of Indonesia's South Natuna Sea. The Keong No. 1 exploration well, drilled to 6,300 feet, encountered 295 feet of natural gas zones in multiple reservoirs in the Arang Formation. The well was cased for future production and then temporarily abandoned. Due to the excellent quality of the reservoir rock, no production tests were conducted. The Keong natural gas discovery is three miles south and east of Conoco's Tembang and Buntal natural gas fields. Production from the Tembang field will begin in 2001 and will provide natural gas supplies for the West Natuna Gas group's Indonesia to Singapore natural gas supply contract. "The natural gas reserves in the newly discovered field are not part of the existing Singapore sales agreement," said Jim McColgin, president of Conoco Indonesia. "The additional Block B reserves discovered this year and the excess capacity being built into the natural gas pipeline to Singapore means we will be more than able to meet Singapore's future demands for natural gas." Construction on the 300-mile subsea pipeline from Block B to Singapore is scheduled to begin in January 2000. Conoco Indonesia, a subsidiary of Conoco Inc. is the operator of the South Natuna Sea Block B contract area with 40 percent interest. Partners include Inpex Natuna, Ltd., a subsidiary of Indonesia Petroleum, Ltd. (35 percent) and Texaco Inc. (25 percent).