Petroliam Nasional Sdn. Bhd. (Petronas) has received a 20-year extension to its production sharing contract (PSC) for the Ketapang block from Indonesia’s Energy and Mineral Resources Ministry. The co-venture developing the Java Sea asset, led by Petronas’ PC Ketapang II Ltd. (PCK2L) as the operator, retains the composition of participating stakes, Malaysia’s state-owned Petronas said. Petronas remains an 80 percent owner while PT Saka Ketapang Perdana, a wholly-owned subsidiary of PT Saka Energi Indonesia, holds the remaining 20 percent.
“We are grateful to the Government of Indonesia for the PSC extension, which will allow PETRONAS to continue leveraging our strong portfolio in Indonesia, through our key strategic projects that we have planned for the Ketapang Working Area”, Adif Zulkifli, Petronas executive vice-president and chief executive for upstream, said in a recent press release. “Since its first oil production in 2015, PCK2L has emerged as one of the key upstream players in East Java, delivering resources to effectively meet the region’s energy demand, and we will continue to foster robust collaborations with the Government of Indonesia and our partners to contribute towards reaching the national production targets”.
The Indonesian government has set a goal of raising the Southeast Asian country’s hydrocarbon production to one million barrels of oil per day (bopd) and 12 billion cubic feet of gas a day by 2030. In Ketapang, Petronas has four development projects, all in the Bukit Tua field. It has so far announced only one successful production well, put onstream May 2015. In 2022 Petronas spudded the BTJTBT2 well, which has a target depth of 1,890 meters (6,200.79 feet), as part of the Bukit Tua Phase 2B project. “The Bukit Tua Phase-2B project’s first hydrocarbon will play an important role in contributing to Indonesia’s target to achieve one million barrels of oil per day by 2030”, Zulkifli said in a media statement April 14, 2023. Bukit Tua Phase 2B targets four development wells with a combined capacity of 12,500 barrels of oil equivalent per day and 30 million cubic feet of gas per day.
In East Java province, besides the Ketapang PSC, Petronas also holds operatorship of North Ketapang and North Madura II. Petronas was awarded the North Ketapang block 2022. “Following this successful bid, PETRONAS will operate and hold a 100 percent equity in the 3,131.8-square kilometer [1,946.01 miles] block with water depths of up to 100 meters [328.08 feet] below sea-level”, it said in a news release March 18, 2022.
Meanwhile in the North Madura II PSC Petronas made its first discovery 2021. The Hidayah-1 exploration well “encountered an oil-bearing carbonate build-up with good reservoir qualities in the Ngimbang carbonate formation and tested at approximately 2,100 BOPD with good crude quality”, Petronas said in a press release February 24, 2021. Emeliana Rice-Oxley, Petronas vice-president for exploration, said at the time, “The discovery at the Hidayah-1 exploration well marks an important milestone for the North Madura II PSC as it has proven oil potential of carbonate build-up in the area”. “This is an encouraging development and is a testament to the vast exploration potential in Indonesia”, Rice-Oxley added. Petronas also holds non-operated interests in seven PSCs in Indonesia, spread onshore and offshore the islands of Java and Sumatra, the Natuna Sea and East Indonesia.
Source:rigzone.com