According to local media report, Repsol and Petronas Carigali (via its subsidiary Petronas Andaman III Indonesia BV) signed an official contract agreement on the latter's acquisition of 49% participating interest in the Andaman III PSC, in offshore North Sumatra Basin, on 23 December 2019. With the completion of the deal, Repsol will hold the remaining 51% operating interest in the block.  In early December, Repsol received approval from the government of Indonesia, to farm out a 49% participating interest in the block to Petronas Carigali. Likewise, Repsol also received approval for a two-year extension of the exploration period in the PSC.   Local media reported in early November 2019 that the exploration extension was recommended by BPMA, the Aceh upstream regulator, prior to final approval by the Ministry of Energy and Mineral Resources.  IHS Markit initially reported the farm-in agreement in early November 2019, pending official approval. Repsol opened a data room in September 2018 offering up to 49% in the block.  The new partner will support the drilling of high-impact wildcat Rencong 1X, planned for late 2020. The well will target Upper Eocene-Lower Oligocene carbonates of the Tampur Formation. The well will fulfill the exploration commitments for the PSC.   In late November 2017, the operator completed the seismic commitment for the PSC with a 3D seismic survey covering more than 3,000 sq km. The survey, acquired using Elnusaâs âElsa Regentâ vessel, was reported as the largest 3D seismic survey acquired in Indonesia at the time.  The block is operated by Repsolâs fully owned subsidiary Talisman (Andaman) BV. Prior to the farm-in by Petronas, the company was holding 100% interest in the PSC.  The Andaman III PSC, awarded in 2009, covers approximately 8,500 sq km and lies between shelf and over 1,300 m water depth.  Background Information  The Andaman III 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 for the initial three-year exploration period included 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 was pushed back to a later date.  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, likely carried over from the first exploration phase (USD 30 million).  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.
Repsol and Petronas Carigali (via its subsidiary Petronas Andaman III Indonesia BV) signed an official contract agreement on the latter's acquisition of 49% participating interest in the Andaman III PSC, in offshore North Sumatra Basin,