IHS Markit understands that PT Saka Energi Indonesia continued to look for a farm-in partner in the South Sesulu PSC, located offshore Kutei Basin, as of early July 2019. The company previously reported the farm-in opportunity in early 2016, offering up to 40% participating interest in the block to help funding future exploration activities.  The operator drilled South Sesulu G-1 (2017, gas) and West SIS A-1 (2018, likely unsuccessful) following the gas discovery in South Sesulu 1ST1. Following the exploration drilling programme, the operator was planning to submit a Plan of Development (POD). The South Sesulu structure is estimated to contain 108 Bcfg (P50), with a potential upside of 500 Bcfg.  Saka Energi is the sole right holder in the South Sesulu PSC. Saka acquired the block from Hess in October 2013.  The farm-in opportunity was first reported in October 2015. According to companyâs finance director, Devi Pradnya, as of October 2015 Saka Energi was in talk with four foreign banks to seek syndication loan to provide USD 400-450 million funds. The loan was expected to fund field development plan in Pangkah PSC, South Sesulu PSC and Muara Bakau PSC (Saka Energi owns 100% interest in the Pangkah PSC and 11.66% interest in the Muara Bakau PSC).  According to a previous local report, the company has been considering options to commercialize the gas from the 1,906 sq km South Sesulu block. The commercialization scenarios are likely to sell the gas to the fertilizer plant in Bontang or deliver the gas via existing pipeline, owned by Mubadala, to LNG facility in Bontang.   The operator completed drilling operations at wildcat South Sesulu 1 ST1 as a gas discovery on or around 30 March 2015. The well was spudded on 24 December 2014 using âRowan Gorilla IIâ J/U. According to companyâs report, the well tested 18 MMcf/d of gas through 40/64 inch choke. The well was targeting Oligocene to Miocene clastics reservoirs.  Prior to the South Sesulu 1ST1 discovery, the operator conducted a 580 sq km 3D seismic survey in October 2010, using Western Geco's 'Western Patriot' M/V. Eight prospects and leads, mainly situated in the area between the Paternoster Platform and Kutei Basin, have been identified from this survey.  Background Information    The South Sesulu block was offered during the Phase II 2008 Tender Round under the direct tender mechanism. The Domestic Market Obligation (DMO) fee was set at 25% and FTP was set at 20% (shareable). Â   The block initially covered an area of slightly more than 3,100 sq km and it lies in water depths of 30 to 100m. Seven wells were drilled in the block in the past, all but one being reported as dry. In 1980 Total encountered gas shows in the well Tunan South 1, under the Mahakam Offshore PSC. According to Migas there is 4,424 km of 2D seismic vintage shot over the block.   The block was awarded to Hess (100%, operator) on 5 May 2009. Firm commitments for the first three-year exploration period amount to USD 26 million and these include geological and geophysical studies (USD 1.5 million), acquisition of 500 sq km 3D seismic data (USD 4.5 million) and drilling of one exploration well (USD 20 million). Signature bonus paid was USD 1.6 million. Sunk costs (reported in April 2012) was about USD 10 million and the first exploration phase is until 4 May 2013 following a request for a one-year extension.     Hess had conducted a farm-in opportunity during Q3 2012, it was initially reported in mid-April 2012. Data room was scheduled from 16 April to 30 May 2012 and deadline for submission of the offer was set on 15 June 2012.   The one well firm commitment was planned in 2013. The planned well was initially targeted the Meratus prospect which is a large 3-way to 4-way dip closure against a basin rim fault. Reservoir targets are Middle to Upper Miocene basin floor fans to shallower deltaic sequences. The structural closure is up to 50 sq km.
IHS Markit understands that PT Saka Energi Indonesia continued to look for a farm-in partner in the South Sesulu PSC, located offshore Kutei Basin, as of early July 2019. The company previously reported the farm-in opportunity in early 2016, offering up to 40% participating interest in the block to help funding future exploration activities. 