Repsol, PETRONAS and Mitsui Oil Exploration (MOECO) have made a gas discovery in the onshore Sakakemang block in South Sumatra, Indonesia, following the drilling of the KBD-2X well.
The discovery in the Sakakemang block is claimed to be the largest gas find in 18 years in Indonesia. It is also claimed to be among the ten largest gas discoveries in the world in the last 12 months.
Repsol revealed that the KBD-2X well provides preliminary estimation of more than 2 TCF of recoverable resources.
The Spanish energy company said that the gas discovery in the Sakakemang block represents new resources for the Indonesian market that will help in driving economic development.
Repsol is the operator of the onshore Indonesian block with a stake of 45%. Malaysian national oil company PETRONAS holds a stake of 45% while MOECO owns the remaining 10% stake in the Sakakemang block.
Repsol said that it will continue the exploratory work in the next few months with another planned appraisal well. The company said that it has closely cooperated with SKK Migas on the exploration work carried out in the Sakakemang block and will continue to work on next steps with Indonesian authorities.
Repsol, in a statement, said: “Indonesia is the focus of Repsol’s exploration investments in Southeast Asia. Repsol holds severals licences in Sumatra, both onshore and offshore, and plans to execute an intense drilling and seismic acquistition campaign in 2019 and 2020.
“Repsol’s exploration and production strategy is focused on the development of gas assets, considered a key fuel for the energy transition to a low-carbon global economy.”
In Indonesia, the Spanish energy company produced 15 million barrels of oil equivalent in 2017, with most of it coming from the Corridor asset. The company owns mineral rights to six blocks in the country, out of which five are exploration blocks and the other is in production/development.
Earlier this month, Repsol signed a deal to acquire Total’s stake of 7.65% stake in the producing Mikkel field in Norwegian Sea for an undisclosed price. The gas and condensate reservoir has been in production since August 2003.