It is understood that Petronas Carigali has acquired a 45% participating interest from operator Repsol in the Sakakemang PSC, located onshore South Sumatra, around November 2018. Earlier on 30 August 2018, MOECO agreed to acquire a 10% participating interest in the block from the operator. After governmental approvals of both deals, the new ownership for the Sakakemang PSC will be Repsol (45%, operator, via subsidiary Talisman Sakakemang), Petronas Carigali (45%), and MOECO (10%).  As of December 2018, exploration drilling was underway in the block with wildcat Kaliberau Dalam 2X (KBD 2X). It is understood that the operator was preparing to sidetrack the well in late October 2018 after the well experienced loss and kick during operations. KBD 2X was spudded on 20 August 2018. The well is targeting the pre-Tertiary Basement, in line with recent exploration drilling in the block.  Previous exploration activity in the block included a 350 sq km survey 3D seismic in late 2015/2016, and one exploration well, Kukulambar 2X, in 2016. The well, likely targeting Lower Miocene carbonates of the Batu Raja Formation and the pre-Tertiary Basement, encountered gas shows.  The Sakakemang PSC was awarded to Talisman Energy in 2014. The block is considered as a highly prospective exploration area due to the proximity to producing blocks such as ConocoPhillips' gas-rich Corridor PSC and Pertamina/Talisman Jambi Merang JOA (which will be transferred to Pertamina in 2019).  Background Information  The Sakakemang block was previously operated by PT Pertamina/ConocoPhillips (Sakakemang) Ltd. JOB under the Sakakemang JOA which was totally relinquished in early 2009. The Sakakemang JOA was awarded to Pertamina and Gulf Resources on 7 December 2001 with contract effective date on 22 November 2001. The working interest split for the JOA was 70% Gulf (then a Conoco subsidiary) and 30% Pertamina. Standard JOA terms apply and signature bonuses totalled USD 2.3 million. The 10-year commitment amount to USD 43 million, with USD 14.5 million assigned for the first three years commitment, consisting of the reprocessing of existing seismic, acquisition of 500 km of 2D seismic and the drilling of two exploratory wells.   In late March 2003, ConocoPhillips received BP Migas approval to rename its Gulf Resources subsidiary companies in Indonesia. The move followed the completion of the merger between Conoco Inc and Phillips Petroleum Co on 30 August 2002. Included in the companies renamed was Gulf Resources (Sakakemang) Ltd. The operating company became ConocoPhillips (Sakakemang) Ltd effective 10 October 2002.   In 2003, Pertamina and ConocoPhillips spudded vertical wildcat Sumpal North 1 which was suspended as a gas discovery after a flow rate of 5.8 MMcf/d was reported. Targeting fractured pre-Tertiary basement, Sumpal North 1 is located in the western part of the block about 4 km north of the ConocoPhillips operated Sumpal gas field in the adjacent Corridor PSC, that field producing from the same play. The well was drilled following the interpretation of a 513.5 km 2D seismic survey completed between 8 April 2002 and 30 June 2002. In 2004, the same consortium found non-commercial amounts of gas with the Kaliberau Dalam 1 wildcat, which targeted pre-Tertiary Basement and Air Benakat Formation. Also in 2004, Pertamina discovered oil and gas from the Air Benakat Formation with wildcat Kenawang P-1, located on the North Palembang High, about 5 km southeast of Kaliberau Dalam 1. The well had a PTD of 1,700 m and reserves have been quoted at 11 MMbbl of oil.   The South Sumatra Basin lies mostly onshore on the island of Sumatra, with a minor proportion extending offshore into the South China Sea. It is delimited by the Barisan-Garba mountain ranges to the south and southwest, and separated from the Central Sumatra Basin by the Tiga Puluh Arch to the northwest. Tertiary sediments onlap the Sunda Platform to the northeast, and the Lampung Platform in the east, which separates the region from the West Java Basin. Deep basinal areas containing over 6,000 m of Tertiary sediments are located onshore.   The basin is delineated by several major structural highs. The recently uplifted pre-Tertiary basement of the Barisan-Garba mountain ranges extends the length of the western and southern basin margins. Crystalline basement also outcrops in the Tiga Puluh Arch to the northwest, which separates the South from the Central Sumatra Basin. To the northeast, Tertiary sedimentary cover onlaps the continental margin of the Sunda Shelf, and in the southeast, it is separated from the Sunda-Asri sub-basins of the West Java Basin, by the shallow Lampung Platform.   The Talang Akar group of plays represents the most significant play in the basin. It comprises Upper Oligocene-Lower Miocene reservoirs formed by high porosity fluvial, deltaic and coastal transgressive sands. Traps are mainly structural with anticlines and faulted anticlines of Middle Miocene-Pliocene age, but a stratigraphic component occurs where there is shale-out or pinch-out of sand lenses against basement highs.   Batu Raja plays are mainly characterised by composite traps with Lower Miocene carbonate build-ups developed on pre-Tertiary structural highs or associated with anticlinal structures. The Air Benakat and Muara Enim plays are regressive shallow marine to littoral reservoir sandstones in anticlinal and/or fault controlled trap structures of Late Miocene-Pliocene age. Basement plays consist of fractured granites, granodiorites, phyllites, quartzites and limestones and are generally gas productive, but yield oil in some fields.
Indonesia (South Sumatra B.) Benakat