With elevated energy demand and good fiscal terms, the outlook for Indonesia is positive.
Production sharing contracts allows full cost recovery for exploration wells before reducing the company’s revenue share, so investment can be recovered even with modest production rates and a low oil price environment. Indonesia is one of South East Asia’s most energy hungry economies. This makes oil and gas exploration projects attractive.
Sumatra is particularly attractive because it has a large, well-connected infrastructure network and an energy-hungry population.
Indonesia – our community commitment
Our JV partnerships in Indonesia also make significant contributions to their local communities, often with a focus on improving local community health and education opportunities, and local infrastructure.
WHAT WE DO
- We work hard to ensure our values are reflected in the way we operate in our offshore activities.
- We ask questions of our joint venture partners in Indonesia.
- We take an active interest in the community engagement and community investment plans for each project we are involved with.
Like exploration and production, community investment may take years to activate.
Community investment plans are developed following detailed local engagement including meeting with Kepala Desa (the local village head), and require final approval from the local Regency (local government).
Through this engagement, affected communities’ social and environmental priorities are identified, such as providing clean water supplies to a village, or renovating local schools
|15 %||Cue Energy *|
|45 %||Santos Sampang Pte. Ltd. (Operator)|
|40 %||Singapore Petroleum Company|
* New Zealand Oil & Gas has a 50.04 per cent interest in Cue Energy.
Project Status: Producing
The Sampang PSC is located in the Madura Straight offshore Madura Island in East Java, Indonesia and covers approximately 536 square-kilometres.
It is composed of two producing fields: Oyong oil and gas field and Wortel gas field. Gas produced from Oyong is transported via a 60 kilometre pipeline to the Grati Onshore Gas Facility and sold to PT Indonesia. Oil is piped to a Floating Storage and Offloading (FSO) vessel for storage and export.
Oil production from the Oyong field commenced in 2007, followed by gas production in 2009. The oil field is in natural decline and a programme of well interventions and recompletions is currently underway. The planned workovers are expected to increase Oyong oil production and extend field life for an additional one to two years until 2017. Wortel gas production commenced in 2012. Gas is transported through a 7 kilometre pipeline to the Oyong platform then piped to onshore facilities.
The Sampang joint venture is focused on extending field life until at least 2018 and evaluating the remaining exploration potential in the permit. The extension of the predominantly gas production from Oyon and Wortel fields and gas sales on long-term contracted prices protects against weak oil prices.
Read More about this Producing Asset here
New Zealand Oil & Gas subsidiary, Cue Energy Resources, has made an announcement that a new gas field has been discovered at the Paus Biru-1 exploration well offshore East Java in the Madura Strait, Indonesia.
New Zealand Oil & Gas subsidiary, Cue Energy Resources, has made an announcement that the Drill Stem Testing (DST) of the Paus Biru-1 exploration well, as announced on 13 November 2018, has been completed.