IndoSino’s growth-oriented strategy is to establish an upstream company through acquisition and optimising the value of a near-term development and producing assets. We will achieve those targets through operating cost efficiencies and increasing production and/or reducing costs by applying prudent development plan and reservoir management strategies.
- IndoSino’s first acquisition is a near-term development asset of Wain PSC in East Kalimantan, Indonesia.
- IndoSino will put all the efforts and fully fund the development project to bring the asset into production by Q3 2024.
- IndoSino is currently also conducting an intensive technical and commercial evaluation on a producing asset which will bring significant growth opportunities for the company.
Wain Block PSC was signed and granted to PT. Pandawa Prima Lestari (PPL) in January 2007 for 30 years contract. PPL owns 100% PI and become the operator. The block geologically is located in Kutai basin, East Kalimantas which is one of prolific hydrocarbon producing basins in Indonesia. Historically, until 2005, five exploration wells had been drilled in this block by Huffco / Virginia Oil Company (Vico).
As operator of Wain PSC, PPL has carried exploration activities including Environmental baseline study, Geological surface mapping and geochemical survey, resistivity survey, Landsat image analysis, 2D seismic reprocessing in 2007; 2D/3D seismic acquisition of 100km and 20 sqkm, laboratorium analysis, passive seismic, CWT-AVO in 2009; Petrophysic analysis of 7 wells in 2012. The firm exploration commitment has been fulfilled by 2015 after drilling 2 exploration wells of South Karamba-1 and Karamba Updip-1 in 2009 and 2015, respectively. South Karamba-1 was tested water and Karamba Updip-1 tested gas with a total combined rate at 19.5 MMSCFD from 5 DSTs. The productive reservoirs are deltaic sandstone within Pulau Balang Formation. After POD I requirements were completed, government of Indonesia has approved its POD I on April 2018.
Since then, the Karamba Field development phase has been started with FEED study. While Gas Sales Purchased Agreement (GSPA) has been signed with Pertamina (Persero) to supply gas for Refinery Unit V, Balikpapan, in 2020.
In early 2023, Indosino took over 90% of operated interests of Wain Block and continue the development works to achieve first production by Q4 2024.
Wain PSC has in place short and long terms program for exploration. To increase oil and gas reserves and production, need technical expertise and adequate subsurface data to make new discovery. In total of 9 Prospects and 2 Leads have been identified with a total Undiscovered Resources about 1.1 TCF. Selected priority prospects are being evaluated thoroughly to determine the best prospect to be committed with a wildcat drilling. Additional seismic data has been considered to be undertaken before drilling to reduce risk and at the same time increase the probability of success.
Wain PSC has one gas field called Karamba which is now being developed and is expected to deliver first gas in Q4 2024. Karamba gas is sweet (lean) with 95% methane and negligence impurities which need a simple production facility to meet sales gas specification. Central processing facility will be constructed near the well pad. Gas pipeline will be built to deliver gas to the buyer to nearby Industrial Park and Refinery in Balikpapan.
There is potential production increase from unperforated zones identified post POD I approved by SKK Migas. The potential production increase can still be handled by the planned CPF and pipeline. The gas demand is high, while gas supply is low which give a lot opportunity for Indosino to grow as gas supplier in the region.
Development of Natural Gas Infrastructure to Enhance National Energy Security in Indonesia
Natural gas is an abundant Indonesian energy resource which has been used in our country since 1960s. It is a naturally occurring compound made up of mainly methane. Odourless and colourless, it is found in different types of rocks, including sandstones, coal seams and shale.
Natural gas has the lowest carbon intensity among fossil fuels, emitting less carbon dioxide (CO2) per unit of energy generated. It burns cleanly and efficiently, with very few non-carbon emissions.
As Indonesia looks for ways to reduce our emissions, natural gas will be seen as a ‘transition’ fuel that supports the increasing use of renewable energy.
To promote and boost utilization of natural gas, the infrastructures play important role. Government of Indonesia has mission to build natural gas infrastructure to boost domestic consumption in 2021-2023 like housing, residential complex, industrial, hotels, etc. With adequate infrastructure and commitment of gas supply will attract investment in upstream, midstream and downstream, increase competitiveness especially in industrial sector and enhance multiplier effect to improve national economic and for national energy security.
