Repsol announces largest gas discovery in Indonesia in the past 18 years
Repsol, together with partners Petronas and Moeco, has made the largest gas find in Indonesia in 18 years following the drilling of the KBD-2X well in South Sumatra. The discovery is also reported to be among the 10 largest finds worldwide in the last 12 months. Preliminary estimates suggest recoverable reserves of at least 2tn cf of gas.
The Kali Berau Dalam (KBD) discovery was made in the Sakakemang block in South Sumatra, where Repsol, as operator, holds a 45% working interest. Petronas owns 45% and Moeco the remaining 10%.
Exploratory work will continue in the coming months, with an additional appraisal well planned.
Commenting on the Indonesian gas discovery, Wood Mackenzie Research Director Andrew Harwood says: ‘At 2tn cf, the KBD-2X discovery is the largest find in Indonesia since ExxonMobil discovered the Cepu oil field in 2001. It would also surpass the largest discovery in the Asia-Pacific in 2018 – the Dorado oil discovery in Australia. In fact, KBD-2X ranks in the top five discoveries globally over the last 12 months. We also believe there's potential for the volume estimate to increase as appraisal of the find progresses.’
He continues: ‘Repsol and Indonesia are likely to want to fast-track the development of the discovery. We think 2024/2025 is a realistic estimate for first production, and with a resource estimate of 2tn cf, the field could produce around 300mn cf/d for around 15 years.’
The discovery lies just 25 km from the Grissik gas plant, which gathers and processes production primarily from the ConocoPhilips-operated Corridor project, before sending it to buyers in Sumatra, West Java and Singapore.
Harwood notes: ‘Besides operator Repsol, which holds a 45% stake in the discovery, the news is very encouraging for the other production sharing contract (PSC) partners, including Petronas, which farmed into the block for 45% in January 2019, and Moeco which holds 10%. ConocoPhillips and Pertamina will also be interested in the result, as they look for resources that could extend the life of the Corridor PSC, scheduled to expire in 2023. The Corridor PSC is a key supplier of gas to Singapore and West Java, but is expected to see declining output from 2024 – a new source of supply would also be positive news for gas buyers in these markets.’
He continues: ‘Indonesia has recently ramped up efforts to rejuvenate its oil and gas sector by reducing bureaucracy, revising fiscal terms, and opening up the level of data available. This discovery, while not a direct result of those efforts, is well timed. It'll be up to Indonesia to capitalise on the buzz generated by this discovery to attract further investment and stimulate more activity. In the near- to medium- term, this discovery will partially offset declining output from other domestic fields, and reduce the reliance on LNG. Longer term, Indonesia needs to continue to attract explorers, particularly in the more difficult but potentially more prospective Eastern Indonesia basins.’
The Kali Berau Dalam (KBD) discovery in the Sakakemang block in South Sumatra lies just 25 km from the Grissik gas plant (pictured), which gathers and processes production from the ConocoPhilips-operated Corridor project, before sending it to buyers in Sumatra, West Java and Singapore