Subsidiaries of Gulf Canada Resources Ltd. have signed a production sharing contract and a joint operating agreement covering two areas in the southern part of Sumatra, Indonesia.
Indonesia's Pertamina and Gulfcan Sumatra Ltd. signed the 30 year production sharing contract covering a 1,450 sq mile block north of the Corridor block.
A 6 year exploration agreement in which Gulf was a partner expired last year. There is no production on the block.
Pertamina and Gulf Canada subsidiary Asamera (Jambi EOR) Ltd. signed a joint operating agreement covering six producing fields in the Jambi area east of Gulfcan's Jambi production sharing contract acreage.
The proximity of the areas to the Corridor block will allow the Gulf Canada affiliates to operate them using trained staff and existing infrastructure.
Under the joint operating agreement, Asamera will install waterfloods in several producing fields in the Jambi area.
Largest three fields to be waterflooded are Bajubang, Tempino, and Kenali Assam, which are producing a combined 2,500 b/d of 33-36 gravity oil.
The three fields had about 1 billion bbl of original oil in place and have produced 235 million bbl of oil. Waterflooding is expected to recover a further 70 million bbl.
Some small fields are part of the agreement. Interests in the joint operating agreement are Pertamina 50%, Asamera 30%, and Bow Valley Industries Ltd. 20%.
CORRIDOR BLOCK WORK
Gulf Canada's Asamera unit operates the 2.2 million acre Corridor block, where production is 30,000 gross b/d (20,000 net b/d) of oil. It negotiated a 20 year extension to its Corridor block technical assistance contract in 1989.
The extension agreement gave Asamera 13 million bbl of reserves that had reverted to Pertamina, bringing Asamera's Corridor block reserves to 30 million bbl and 150 bcf of gas.
The agreement also covers 30 million bbl of probable reserves. Two thirds of that is expected to become proved reserves with delineation drilling in Bentayan field and gas lift and waterflooding in Ramba field. Those projects are to start this year. The fields are in technical assistance contract areas.
Asamera expects to maintain production from the Corridor block by drilling numerous prospects and carrying out several development and production enhancement projects during 1990-91.
Production from the Corridor block technical assistance contract areas, which cover 118,862 gross acres, began in February 1988. First to go on production were Rawa, South Rawa, Keri, and Supat fields.
Gulf Canada in 1989 negotiated a 20 year extension of its production sharing contract on Block A in northern Sumatra adjacent to Mobil Oil Corp. operated Arun gas field, in which Gulf Canada holds a royalty interest.
It plans to conduct a detailed seismic program focusing on deep gas prospects and conduct shallow drilling for oil on Block A.
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