Saka Energi was awarded the Pekawai block, located in offshore/onshore East Kalimantan, on 31 January 2018. The block was offered as part of the Conventional Oil and Gas Bidding First Round 2017 under the Direct Offer mechanism. The block will be operated under the new Gross Split fiscal terms. The base government/contractor split under Gross Split terms is 57%/43% for oil and 52%/48% for gas, subject to modifiers depending on the specific situation of the block. Signature bonus for the block was USD 500,000. The minimum exploration commitments for the first three-year exploration period include three G&G studies and one exploration well, for a total value of USD 10.45 million. The Pekawai block consists of nine sub-blocks with a total area of around 7,780 sq km. Data available for this area consist of seven wells and 5,178 km of 2D seismic data, ranging from 1966 to 2001. The block has been estimated by Migas to have prospective resources of 742 Bcfg. The block is located in the Kutei Basin, ranging from onshore to deep water. With this award, Saka Energi builds up its position in the area, where the company already operates the South Sesulu PSC. Potential exploration targets in the area include Eocene-Oligocene carbonates (Berai Formation or equivalent), Middle-Upper Miocene deltaic sandstones and Pliocene turbidite sandstones in the deep water (Sepinggan Formation). The South Sesulu 1A discovery by Saka Energi tested gas in a carbonate interval within the Sepinggan Formation. Several other gas fields are located the vicinity of the Pekawai block, including Peciko, Jumelai, Stupa, Jempang and Metulang in the Offshore Mahakam PSC, and Merakes further offshore in the East Sepinggan PSC.
Indonesia (Kutei B.) Sepinggan