Page 8 - AsianOil Week 21

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Indonesia’s Mako gas field receives resource boost
PROJECTS & COMPANIES
CONRAD Petroleum’s Mako natural gas field offshore Indonesia has seen its resources upgraded significantly following an independent audit, junior partner Coro Energy said this week.
Conrad hired Gaffney Cline and Associates (GCA) to conduct an independent audit of its findings following appraisal drilling campaign in the fourth quarter of 2019. The Tambak-1 and Tambak-2 wells demonstrated the presence of “well-developed, high-quality reservoir sand- stones with a common gas water contact across the Mako structure,” Coro said in April.
The GCA audit confirmed a significant resource upgrade for the field compared to their previous resource assessment from January 2019. The estimated 2C (contingent) recovera- ble resource has been increased by around 79% compared with last year’s audit to 495bn cubic feet (14.02bn cubic metres). GCA said 3C (con- tingent) resources had risen by approximately 108% to 817 bcf (23.14 bcm).
Coro said the 2C figures meant the field was one of the largest ever discovered in the West Natuna Basin. Coro added that the field was the largest confirmed undeveloped resource in the surrounding area.
Gas volumes are set to be upgraded to reserves once select commercial milestones have been achieved, including execution of a gas sales agreement (GSA) and a final investment deci- sion (FID).
The field is part of the offshore Duyung production-sharing contract (PSC), which Conrad operates with a 76.5% stake, while Coro holds 15% and Empyrean Energy owns the remaining 8.5%.
Coro completed the acquisition of its 15% interest from West Natuna Exploration last week, with the company saying on May 22 that all necessary regulatory approvals for the sale had been received. Coro said a heads of agree- ment (HoA) with a gas buyer in Singapore was already in place.
The field is located close to the West Natuna pipeline system and gas from the field can be sold to buyers in Indonesia and Singapore.
Coro’s non-executive chairman, James Par- sons, said: “We are very encouraged by the result- ing net asset value uplift and see very material upside exposure for shareholders as sentiment in the oil and gas sector begins its recovery.”™
Image: Conrad Petroleum
Pertamina to bring Balikpapan refinery back on stream in June
PROJECTS & COMPANIES
INDONESIAN national oil company (NOC) Pertamina said this week that it intended to restart its Balikpapan refinery from June 1 as Indonesia weighs up plans to ease or even exit its lockdown.
The company began winding down opera- tions in April in response to falling demand for oil products amid government efforts to slow the spread of the coronavirus (COVID-19). The 260,000 barrel per day (bpd) refinery in East
Kalimantan Province was shuttered completely earlier this month.
“We plan for the Balikpapan refinery to operate normally on June 1 with a crude intake capacity of 215,000 barrels per day,” Pertamina spokeswoman Fajriyah Usman told Reuters on May 26. “We will adjust [crude runs] to [match] the demand while maintaining the stock at a safe level.”
The Energy Ministry moved earlier this month to allow Pertamina to begin selling
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w w w . N E W S B A S E . c o m Week 21 28•May•2020