Page 9 - AsianOil Week 15 2022

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Indonesia Energy spuds

oil wells in Kruh block

PROJECTS & JAKARTA-BASED Indonesia Energy Corp. of 4.99mn barrels as of January 2019.
COMPANIES (IEC) announced on April 8 that it had begun IEC has estimated that under the terms of its
drilling the first of two back-to-back production contract with the Indonesian government and
wells in its onshore 258 square km Kruh Block with an oil price of around $90 per barrel, each
on the island of Sumatra. well will generate a net revenue of $2.4mn during
The first well, K-27, will be drilled to a depth its first 12 months, which will recover the cost of
of 3,400 feet (1,036 metres) and will take up to drilling during the first year of production.
45 days to complete. Drilling of the second well, IEC’s president, Frank Ingriselli, said the
K-28, will take place immediately thereafter. IEC company was looking forward to taking advan- The successful
is planning to drill two further wells in the com- tage of current high oil prices and potentially
ing months. Drilling on the third well is expected moving towards a cash flow positive position drilling of K-27
to start in June-July, while drilling the fourth well this year. This would set the stage for further
will begin before the end of the year. Each well is drilling and growth for the company in 2022 and and K-28 is
expected to cost $1.5mn to drill and complete. beyond, he said in the statement.
“These wells are the continuation of IEC’s “We believe Kruh Block is a world-class asset expected to boost
previously announced drilling campaign to that should significantly grow our cash flow as Kruh field’s oil
complete a total of 12 new production wells in we drill additional wells and seek to maximise
Kruh Block by the end of 2024,” the company returns on our investments,” Ingriselli said. output to more
said in a statement. Kruh is being developed as a joint operat-
The successful drilling of K-27 and K-28 ing partnership with Indonesia’s state-owned than 100 barrels
is expected to boost Kruh field’s oil output Pertamina.
to more than 100 barrels per day (bpd) over IEC is also preparing to develop its Citarum per day.
the first year of production. There are already Block, which covers an area of 3,925 square km
five production wells operating in the field. and is located onshore the island of Java. The field
The company has reported that crude output is estimated to hold 1bn barrels of oil equivalent
averaged 9,900 barrels per month on a gross (boe) in hydrocarbons. Citarum’s combined oil-
basis during 2018. There are eight proven and fields produce around 45,000 bpd of crude oil
potentially oil-bearing structures in Kruh and 450mn cubic feet (12.7mn cubic metres) of
and three structures – North Kruh, Kruh and gas, according to IEC information. The company
West Kruh – have combined proven develop- holds a production-sharing contract (PSC) with
ment and undeveloped gross crude reserves the government of Indonesia.™

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