Conrad Asia Energy Ltd. won the bid for Offshore North West Aceh (ONWA) and Offshore South West Aceh (OSWA) production sharing contracts (PSCs), offshore northwest and southwest of the Aceh Province of Indonesia.
ONWA block comprises 9,182 sq km and contains Meulaboh-1 and Meulaboh East-1 gas discovery wells. OSWA block covers 10,700 sq km and contains the Singkel-1 gas accumulation. Water depths in the areas are 5-1,500 m, with existing discoveries in water depths less than 100 m. The discoveries have been flow tested at commercial rates, the company said.
The shallow water discoveries lie in pinnacle reefs where Conrad has identified seven additional leads to mature for future drilling. Using older 2D seismic data, historical drilling success rates in the shallow water areas has been around 35%, the company said.
Recent seismic surveys have delineated leads, with existing seismic showing flat spots and gas chimneys, indicating evidence of the presence of hydrocarbons, the company said, noting plans to acquire 3D seismic data in the most prospective areas.
The total committed work program for each PSC is $15 million and includes geological studies in 2023, 500 sq km of 3D seismic acquisition in 2024, and drilling of a well in 2025.
If Conrad accepts the award, it will become operator of the blocks with 100% participating interest.
Alex Procyk | Upstream Editor
Alex Procyk is Upstream Editor at Oil & Gas Journal. He has also served as a principal technical professional at Halliburton and as a completion engineer at ConocoPhillips. He holds a BS in chemistry (1987) from Kent State University and a PhD in chemistry (1992) from Carnegie Mellon University. He is a member of the Society of Petroleum Engineers (SPE).
