SKK Migas reported in mid-December 2018 that ENIâs Merakes East 1 in the East Sepinggan PSC, located in the deepwater Makassar Strait, has discovered gas and condensate. Drill stem test carried out at the well has flowed 30 MMcf/d of gas and 100 b/d of condensate.  The well was spudded on or around 10 September 2018, drilled using Saipemâs âScarabeo 7â S/S, at a water depth of 1,585 m. The well has been drilled directionally, initially targeting two turbidite sandstone layers (âT-67â and âT-68â) within the Pliocene Sepinggan Formation, with a PTD of 3,420 mMD. Subsequently, the operator was planning to sidetrack the well targeting the âT-67â sandstone, with a PTD of 3,419 mMD in the sidetrack hole.  The rig was mobilized to Balikpapan, East Kalimantan, around mid-July 2018 in preparation of drilling.  Merakes East 1 is located approximately 8 km east of the Merakes 1X discovery well. The new well was likely targeting to find additional gas volumes in view of the upcoming development of the Merakes field.  Rightholders in the East Sepinggan block are Eni (85%, operator) and Pertamina Hulu Energi (15%). Â The operator and partner in early December 2018 agreed to convert the blockâs contract from cost recovery to gross split mechanism. Official signing of the contract amendment was completed on 11 December 2018. The move will simplify, speed up approval processes and provide the company with certainty on receiving the proceeds amount. According to media reports, the contractor/government split in the amended contract will be 72/28% for gas and 67/33% for liquids, in favour of contractors.    Eni received approval for the Merakes Plan of Development (POD) on 18 April 2018. Following conversion of the contract, an amended POD will be required to be approved. The field will be developed as a subsea tieback to the Jangkrik Floating Production Unit (FPU), located some 35 km northeast. Six subsea development wells are planned to be drilled. The use of shared facilities with the Jangrkik project, located in Eniâs Muara Bakau PSC, will allow cost efficiency and shorter execution time for the Merakes development. First gas from the field is expected around 2021.    Wildcat Merakes 1X was announced as a significant gas discovery on 27 October 2014. The well was drilled to total depth of 2,640 m and encountered a total of 60 m hydrocarbon column in a high quality Lower Pliocene clastic sequence. The well was drilled in approximately 1,400 m of water. The field is estimated to contain GIIP volumes of 2 Tcf.    In early January 2017, Eni completed operations on appraisal well Merakes 2Dir in the deepwater portion of the block. Production test, which was limited by surface facilities, showed excellent gas deliverability from the main Pliocene turbidite reservoir. The well was drilled to a TD of 2,732 m using Saipemâs âScarabeo 7â S/S. Around 17 m of clean Pliocene sands with good petrophysical properties were encountered.    The Merakes field is interpreted as a large fan lobe deposited at the edge of the slope, in a more distal setting than the Jangkrik channel sands.    Background Information    Eni officially signed the PSC for the East Sepinggan block on 20 July 2012. Firm commitments for the first three years of exploration include G&G studies (USD 9.18 million) and one well in the second exploration year (USD 71.43 million). Signature bonus paid was USD 3 million. The block was offered during the First Petroleum Bidding Round 2012 under the Direct Offer mechanism. Two bid documents were purchased for this block and there was one company who submitted a participating bid. Preliminary announcement of the winner for the block was made by Migas on 25 May 2012.    Pertamina acquired 15% interest in the East Sepinggan PSC from Eni in February 2015.    The East Sepinggan block is located 16 km south of Gendalo oil and gas field, situated within water depths of 1,500 m to 2,300 m. Three exploration wells were drilled within the block boundaries from May to June 1999 with the first wildcat well, Giram 1, drilled by Unocal Ganal Ltd. Giram 1 failed to find commercial hydrocarbon and was plugged and abandoned with gas shows encountered. Unocal drilled the second well, Gambah 1, 1.25 km north-east of Giram 1 and only encountered hydrocarbon shows. A follow-up sidetrack, Gambah 1ST1, encountered gas shows. The wells were drilled at an average water depth of 1,320 m.    Seismic data available for this block include 2,375 km of 2D data, mostly concentrated in the western sector.    Prospective play in this area is the deepwater Miocene-Pliocene turbidite play. Proven reservoirs of this play include slope channel sandstones and ponded turbidite sandstones. Sands are fine to very fine grained, moderately to poorly sorted and thin bedded. Reservoir quality is excellent with 12-35% porosity and permeabilities in the range of hundreds of mD. On the slope, deposits comprise debrites at the base overlain by slope channel complexes and channel levee complexes. A similar succession exists on the basin floor comprising debrites and basin floor fans. These sand prone reservoirs increase in lateral extent from slope-step to slope mini basin and from slope to basin floor. Reservoirs in this play rely on seal from intraformational mudstones and in the deepwater areas of the basin by hemipelagic mudstones.
Indonesia (Kutei B.) Merakes