According to a release from Indonesian Ministry of Energy and Mineral Resources (MEMR) in early September 2018, Energy Equity Epic Sengkang (EEES), a subsidiary of Energy World Corporation, has received approval for a new contract for the Sengkang PSC, located in onshore central Sulawesi. At the time of reporting, the company had not officially confirmed the award.  Upon official signing, the new 20-year contract will likely adopt Gross Split fiscal terms. Signature bonus has been reported at USD 20 million, with a firm work programme amounting to USD 60 million. EEES has been indicated as the only company that expressed interest in operating the block.  The current Sengkang PSC, operated by EEES with 100% interest, is due to expire in October 2022. Earlier in 2018, the operator had been formally invited by SKK Migas to submit an application for contract extension.  The block contains the Walanga, Sampi Sampi and Bonge fields (collectively known as âWASAMBOâ) that will supply gas to a modular LNG plant, currently under construction. The PSC also covers the producing Kampung Baru gas field which fuels the 315 MW Sengkang power plant. Additional gas prospects and leads have been identified following a 226 km 2D seismic acquisition completed in April 2013. The 2,925 sq km block reportedly produced around 32 MMcfg/d in the first semester of 2018.  The Sengkang PSC is one of four contracts expiring in 2022, together with the Tungkal PSC (operated by MontDâor), Coastal Plains and Pekanbaru PSC (operated by a 50/50 joint venture between Pertamina and PT Bumi Siak Pusako), and Tarakan PSC (operated by Medco). Reportedly, the current operators have applied for extensions in all the four blocks. The MEMR is likely targeting to finalize the new contracts for these blocks by Q3 2018.  Background Information  The 29,260 sq km Sengkang PSC was first awarded to Indonesia Gulf in October 1970. The "Onshore South Sulawesi PSC", as it was also known, covered both the Sengkang and Lariang basins with some shallow offshore acreage included. The PSC consisted of two sub-blocks, namely the Lariang Block (or "Northern Parcel") of 10,026 sq km and the Sengkang Block (or "Southern Parcel") of 19,510 sq km.  Between 1970 and 1975, some 3,210km of land and marine seismic were recorded in the Lariang, Sengkang, Spermonde and Masamba areas. Field geological surveys were undertaken in the remote areas of western Sulawesi while an aeromagnetic survey was flown in 1971 and a radar imagery survey in 1974. Five stratigraphic wells were drilled in 1973, namely Lamata 1 and Sallo Bullo 1 in the East Sengkang Basin, Soreang 1 in the Spermonde Basin and Lariang 1 and Karama 1 in the Lariang Basin.   The first exploration drilling campaign began in 1975 and continued in 1976 with a dry well at Peniki 1 and gas discoveries at Walanga 1, Kampung Baru 1 and Bonge 1. A further 590km seismic programme was shot in 1975. No further drilling took place until 1979 with the partners instead concentrating on seismic reprocessing, conducting field geological surveys and shooting a further 173km seismic programme in the Lariang area.   The second drilling campaign took place in 1979/1980 and saw a successful Kampung Baru delineation and a gas discovery at Sampi-Sampi 1, while Tike 1 and Kampung Baru North 1 were dry. Reserves at Kampung Baru were calculated at 302 Bcf, with 31 Bcf at Sampi-Sampi, 121 Bcf at Walanga but just 8 Bcf at Bonge, all fields in Tacipi Formation reefal limestone.   In 1981, following the extension of the exploration phase, the partners shot a 318km seismic survey in the Sengkang area and drilled four delineations at Kampung Baru (Kampung Baru 5 being dry), Walanga 2 (gas) and Tironge 1 (dry).   On 20 November 1985, Chevron assumed Gulf's interest following corporate take-over. Energy Equity Corp (EEC) purchased the PSC from BP/Chevron on 10 November 1994 and the Lariang Block was relinquished in its entirety prior to development of Sengkang Block. On 16 June 1995 a PSC Amendment was concluded and the PSC was extended for a 20-year term effective from 24 October 2000, with relinquishments having reduced the block to 3,627 sq km.  In October 1995, Tenneco Gas Australia (a subsidiary of Tenneco Inc) formed a joint-venture with EEC, purchasing a 50% stake in the PSC (and the operating subsidiary) and Sengkang Power Project for US$ 21 million. In December 1995, El Paso Corp purchased Tenneco's 50% stake in the joint-venture. The operating company was renamed as Energy Equity EPIC (Sengkang) Pty Ltd. Coincident with the extension becoming effective, Pertamina exercised its right to back-in to the PSC for a 10% stake.   Energy Equity proposed a gas to power project and POD approval was granted in 1995. Construction of field facilities, drilling of three development wells and the construction of a 38km pipeline and the 135MW power plant at Sengkang proceeded through 1997/1998, with the Kampung Baru field coming onstream in August 1997 at about 17 MMcf/d. A 60-65MW expansion involving an additional gas turbine was planned for completion in 2005 but was delayed until July 2007, prompting a deferral of a new exploration programme consisting of a 2D survey and at least one well.
According to a release from Indonesian Ministry of Energy and Mineral Resources (MEMR) in early September 2018, Energy Equity Epic Sengkang (EEES), a subsidiary of Energy World Corporation, has received approval for a new contract for the Sengkang PSC, located in onshore central Sulawesi.