By OGJ editors
HOUSTON, Dec. 23 -- PT Pertamina's 2004 work plan includes delineation of the large Donggi gas-condensate discovery on remote eastern Sulawesi Island that could anchor another Indonesian LNG export center.
The newly privatized concern will dedicate 93% of its $700 million budget to oil and gas production, upstream director Bambang Nugroho told OPEC News Agency last week.
The Sulawesi program includes deepwater drilling in the Molucca Sea off Toili.
Pertamina will drill 8 wells to try to boost reserves at its 2001 Donggi discovery on the Matindok block 1,150 miles east-northeast of Jakarta, Bambang said.
The company originally estimated that Donggi had more than 20 tcf of proved and probable reserves, but later revised that to 3 tcf. It considers 8-9 tcf the mininum to support creation of an LNG project.
Marathon Oil Corp. said it believes the Matindok and Senoro blocks in eastern Sulawesi have the potential to supply a third LNG center in Indonesia (OGJ Online, Aug. 29, 2003). Marathon was moving toward transporting LNG to Baja California, Mexico, for sale in California. Shipments were to start in 2007-09.
Pertamina and PT Medco Energi's Exspan Tomori Sulawesi unit equally share interests in the Senoro block, where they have discovered several trillion cubic feet of gas.
Indonesia exports LNG from Bontang in East Kalimantan, and Aceh in North Sumatra.
A group led by BP PLC signed a heads of agreement to start shipping 500 MMcfd of gas as LNG from the Tangguh project in Papua, eastern Indonesia, to Baja California in 2007 (OGJ Online, Dec. 19, 2003).
Pertamina also plans to add a ninth train at Bontang (OGJ, June 30, 2003, p. 64).
Bambang also said Pertamina plans to drill its first offshore wells in 600-900 m of water at Matindok in 2004.
Groups led by the former Union Texas Petroleum Corp. did much of the initial exploratory work in the 1980s, discovering Tiaka oil and gas field and Matindok gas field on the former Tomori production sharing contract.
Pertamina was on the cusp of starting production from Tiaka field, in 175 ft of water 10 miles off Sulawesi in Tolo Bay (OGJ, Oct. 7, 1985, p. 68). Expected initial rate is 6,500 b/d.
Other 2004 work
Other drilling on Java and Sumatra and outside Indonesia also figures in Pertamina's 2004 outlook.
About 620 bcf of gas at the Randublatung-1A discovery in central Java will be dedicated to state power concern PT PLN's Semarang power plant.
Pertamina is negotiating to acquire a 4.28% working interest in the gas-producing Jabung block in South Sumatra from Petronas of Malaysia and PetroChina Co. Ltd., Bambamg said.
Pertamina is involved in overseas projects in Malaysia, Viet Nam, and Block III in Iraq's western desert.