In Indonesia, equity-method affiliate Universe Gas & Oil Company, Inc. owns an interest in the Sanga Sanga block in Eastern Kalimantan. Production of crude oil and natural gas is carried out mainly at the four oil and gas fields of Badak, Nilam, Mutiara, and Semberah. Average gross production for the block in 2007 was 2,479 kl/d (15,595 bopd) of crude oil, 14,334 thousand m3/d (506 mmcfd) of natural gas and a crude oil equivalent of 16,813 kl/d (105,760 boe/d). A total of 37 new production wells were drilled to increase the recovery efficiency and maintain production volume of crude oil and natural gas.
Further, our consolidated subsidiary Japex Block A Ltd., which holds a 16.67% interest in the northern Sumatra Block A, has received approval from the Indonesian government for its plan to develop discovered and undeveloped gas fields in Block A. At present, that company is undertaking the frontend engineering and design (FEED) work. In December 2007, meanwhile, we signed a gas sales agreement (GSA) with a government-operated fertilizer plant, and in April 2008 we signed an additional GSA with Indonesia’s state-run electric power company.
Consolidated subsidiary Japex Buton Ltd. was awarded the Buton Block, an onshore/offshore block on Buton Island, Southeast Sulawesi, through a public auction in October 2006. Following the execution of a production sharing contract (PSC) in January 2007, Japex Buton began exploration activities, including geological airborne gravity and magnetic and 2D seismic surveys.
In May 2007, JAPEX acquired a 25% equity stake in Energi Mega Pratma Inc. (EMPI), which holds a 100% working interest in the Kangean block offshore East Java through subsidiaries. EMPI became a JAPEX equity-method affiliate as a result of this share purchase. In the Kangean block, together with production in the existing Pagerungan gas field and the Sepangang Island oil field, we have also restarted production at the Sepangang Island oil field and are conducting development work at the Pagerungan Utara offshore oil field and TSB gas field. In 2007, the average gross production for the block was 211 kl/d (1,329 b/d) of crude oil and 1,168 thousand m3/d (41 mmcf/d) of natural gas and a crude oil equivalent of 1,380 kl/d (8,681 boe/d). |
| Block
Name |
| Sanga Sanga block (onshore
Eastern Kalimantan Island) |
|
|
| Affiliate |
Universe
Gas & Oil Company, Inc. |
| Participating
Interest |
BP
East Kalimantan Ltd. |
26.250% |
| LASMO
Sanga Sanga Ltd. |
26.250% |
| Virginia
International Co. |
15.625% |
| Virginia
Indonesia Co.(Operator) |
7.500% |
| Opicoil
Houston Inc. |
20.000% |
| Universe
Gas & Oil Company, Inc. |
4.375% |
| Activities |
Producing
from Badak, Nilam Mutiara, and Semberah fields. |
|
|
| Block
Name |
| Block A (onshore Northern
Sumatra Island) |
|
|
| Subsidiary |
Japex
Block A Ltd. |
| Participating
Interest |
Medco
(Operator) |
41.67% |
Premier
Oil |
41.67% |
| Japex
Block A Ltd. |
16.67% |
| Activities |
POD
preparation for Alur Siwah gas field. |
|
|
| Block
Name |
| Buton block (onshore and
offshore Southern Buton Island, SE Sulawesi) |
|
|
| Affiliate |
Japex
Buton Ltd. |
| Participating
Interest |
Japex
Buton Ltd. (Operator) |
40% |
Premier
Oil |
30% |
| KUFPEC |
30% |
| Activities |
Exploration
activities |
|
|
| Block
Name |
| Kangean block (offshore East Java) |
|
|
| Affiliate |
Energi Mega Pratama Inc. ("EMPI") |
| Participating Interest |
Kangean Energy Indonesia Ltd. (Operator)
(A wholly - owned subsidiary of EMPI) |
60% |
EMP Exploration (Kangean) Ltd.
(A wholly - owned subsidiary of EMPI) |
40% |
| Activities |
Producing from Pagerungan gas field. Restarting production at Sepanjan Island oil field and conducting development at Pagerungan Utara offshore oil field and TSB gas field. |
|
|
