Repsol continued offering a farm-in opportunity in the Andaman III PSC, located in offshore North Sumatra Basin, with a data room open in September-October 2018. The company is targeting to drill a commitment exploration well in the block in late 2019, targeting the Rencong prospect.  The Rencong prospect is a large, faulted four-way closure. The main fault block has been estimated to contain prospective resources of around 1.8 Tcfg and 30 MMbc, likely within Upper Oligocene to Lower Miocene Parapat sandstone reservoirs.  In late November 2017, the company completed a commitment 3D seismic survey that covered over than 3,000 sq km in the block. The survey, acquired using Elnusaâs âElsa Regentâ vessel, was reported as the largest 3D seismic survey acquired in Indonesia at the time.   Local media outlets in mid-September 2016 indicated that Repsol was seeking the necessary permits for the seismic acquisition. The operator reportedly held meetings with the local Aceh administration in preparation of the survey.  The block is operated by Repsolâs fully owned subsidiary Talisman, with 100% interest. Prior to the acquisition by Repsol, Talisman had offered a farm-in opportunity in the block in 2014. At the time, several companies reportedly expressed interest in the highly prospective block.  The Andaman III PSC, awarded in 2009, covers approximately 8,500 sq km and lies between shelf and over 1,300 m water depth.    The block was offered during Phase II 2008 Tender Round under the regular tender mechanism and was officially awarded to Talisman (100%, operator) on 30 November 2009. The company paid a signature bonus of USD 7.5 million for the block. Firm commitments include G&G studies worth USD 2 million, acquisition of 2,500 sq km 3D seismic (USD 15 million) and drilling one well (USD 30 million). The seismic acquisition commitment was initially planned in 2010 but has been pushed back to a later date. The well commitment likewise has not been fulfilled.    This deep water area in the southern Andaman Sea is vastly under-explored. Three exploration wells have been previously drilled within the current block boundaries. All are situated in the southern of the block, on the North Sumatran shelf. Samalanga 1 (P&A/dry - 1986) and Glumpang Minyeuk 1 (P&A/dry, 1987) were both drilled by Inpex, under the North Aceh Offshore PSC. EAO-B-1, which lies at the edge of the block, was also a dry hole. This well was drilled by Mobil in 1982 under the NSO PSC.    Background Information    Multiple play types exist in the area, including carbonate build-up on a basement high or on an anticline, syn-rift clastics with combined stratigraphic-structural trap component, inverted syn-rift clastics close to the Mergui Ridge, carbonate build-ups on flanks of the Mergui Ridge and Barisan fold-belt anticlines. Potential source rocks in the area in include the shales of the Eocene Parapat (lacustrine syn-rift), Oligocene Bampo, Lower Miocene Peutu/Belumai and Middle Miocene Baong formations. Potential reservoirs which could have commercial accumulations in this deepwater area are the Belumai carbonates and Parapat syn-rift sandstones. Shales of the Bampo and Baong formations would be the likely seals. Second exploration phase commitments (Year 4 to 6) include G&G studies (USD 0.6 million), acquisition of 500 sq km 3D seismic data (USD 3 million) and drilling one exploration well (USD 30 million).    Directly east of the Andaman III block are Eni's Krueng Mane block, where two out of the planned three exploration wells were drilled in 2008/2009, and Zaratex's Lhokseumawe PSC. The 1985-1997 North Aceh Offshore PSC, operated by Inpex, previously covered a portion of this new block. This contract was held under moratorium for several years while Inpex attempted to re-negotiate the terms of the PSC to take into account the deep water nature of the area. Failure to settle the terms and the subsequent unjustifiable economics of exploration led to Inpex prematurely relinquishing the block. Vintage 2D seismic does exist, after Geco Prakla shot several 100 km lines over the area (North Sumatra Basin - Mergui Ridge) in 1995.
Indonesia, Andaman III PSC