By OGJ editors
HOUSTON, Aug. 8 -- The Indonesian government is pressing ConocoPhillips and ExxonMobil Corp. to either develop a large carbon dioxide and methane field in Northeast Sumatra or give up their rights to the block, press reports said Aug. 8.
The companies are 50-50 holders in Block A in Aceh Province along the Strait of Malacca coast, where a ConocoPhillips predecessor discovered Kuala Langsa field in 1992 (see map, OGJ, July 20, 1992, p. 36). Medco Energi International, Indonesia's largest private oil concern, has expressed interest in participating in the field's development.
The former Asamera Oil (Indonesia) Ltd. and a partner cut more than 700 ft of net gas pay in Miocene Peutu limestone at 10,825 ft. The Kuala Langsa-1, in the southern North Sumatra basin, flowed at rates of 81-83% CO2 and 17-19% methane. The field is 110 km southeast of ExxonMobil's Arun natural gas liquefaction and processing plant.
Asamera successor Gulf Canada Resources Ltd. was negotiating to sell 100-120 MMcfd of methane from Block A to international LNG and domestic fertilizer buyers in 1998 before it was acquired by Conoco Inc. in mid-2001. Field size information was not available.
One official said Indonesia offered in May to take 50% of project revenue instead of the usual 70% but had received no response from operator ConocoPhillips. ExxonMobil has offered to sell its interest, he said, and domestic fertilizer plants could take the gas by 2008.
