Indonesia - KrisEnergy 2019

Our portfolio contains a balance of assets across the E&P life cycle

KrisEnergy's focus area runs from the Surma Basin in Bangladesh in the west to the Papuan Basin in the east, and from offshore southern China in the north to Indonesia in the south. Our activities include all facets of exploration, appraisal, development and production, from identifying potential prospects to discovery and commercialisation.

Our current portfolio comprises interests in three producing assets (B8/32 and G10/48 oil and gas fields in the Gulf of Thailand and the Bangora gas field in Block 9, onshore Bangladesh), two oil development projects (G6/48 in the Gulf of Thailand and Block A offshore Cambodia), one gas development in Indonesia (Bulu PSC offshore East Java), and six exploration/appraisal blocks in Bangladesh, Indonesia, Thailand and Vietnam. The B9A licence in the Gulf of Thailand ceased production in October 2017 and abandonment operations are underway before the area is relinquished.

Under the terms of the licences for the contract areas, the company holds various rights to explore for, develop and/or extract oil and gas resources in a specifically demarcated area under agreement with the respective governments or the regulatory bodies.

Each project is unique but will encompass a combination of key stages:

Pre-exploration

Our business development team will work up exploration concepts in areas where we have detailed knowledge. When a target area is identified, we will acquire and interpret existing data including seismic, other geophysical or geological data, and carry out geological fieldwork. If the results are positive, we will seek to acquire an exploration licence from either the host government or the entity holding the existing rights to the contract area.

Exploration

On acquisition of an exploration licence, we will gather and interpret further data to plan an exploratory drilling program to assess potential reserves. At this stage, we may seek to mitigate risk and defray costs by farming out to third parties all or a portion of the exploration drilling costs.

Development

Once an oil or gas discovery is made, we will acquire and interpret further information in order to formulate an appraisal drilling program to assess the outer parameters of the reserves and determine the economic viability of the discovery. If appraisal drilling is successful, we will employ an independent consulting firm to certify the reserves and that assessment will be used to prepare a plan of development. Once the plan is approved, we will drill development wells and construct the facilities required for production to commence.

Production

Once production has commenced, we will maintain the field and make every attempt to extract oil or gas as efficiently as possible. This may include re-entry of wells to repair production equipment, the drilling of closely spaced wells and the close monitoring of reservoir/production performance.

Contract area	Working interest (%)	Area (sq km)	Operator	Onshore/ offshore	Production/ near production	Development pending	Development unclarified	Exploration
Block A	95	3083	KrisEnergy	off	•		•	•

Cambodia Block A petroleum agreement signed on 23 Aug 2017

Cambodia Block A is located in the Khmer Basin in Cambodian waters in the Gulf of Thailand. A typical oil or gas field in the Gulf of Thailand has multiple fault blocks with hydrocarbons trapped in multiple reservoirs.

KrisEnergy holds one asset offshore Cambodia, Cambodia Block A, for which it took over operatorship in 2014. The licence contains the Apsara oil discovery.

On 23 August 2017, KrisEnergy and the Royal Government of Cambodia signed the petroleum agreement for Cambodia Block A marking the first step to making the Royal Kingdom of Cambodia an oil-producing nation.

Full information pack on the Apsara oil development.

Block A is Cambodia's most advanced near-term development project

Cambodia Block A covers an area of 3,083 sq km in the Gulf of Thailand over the Khmer Basin, approximately 150 km offshore Cambodia where water depths range between 50 and 80 metres.

KrisEnergy and the Royal Government of Cambodia signed the petroleum agreement for Block a on 23 August 2017.

KrisEnergy holds 95% working interest in Cambodia Block A with 5% held by the Royal Government of Cambodia.

Source:
Eocene to Oligocene lacustrine and Miocene fluvio-deltaic shales
Reservoir:
Oligo-Miocene fluvial sandstones
Trap:
Tilted fault blocks
Seal:
Oligo-Miocene intra-formational shales

Contract area	Working interest (%)	Area (sq km)	Operator	Onshore/ offshore	Production/ near production	Development unclarified	Exploration
1. Andaman II PSC	30	7400	Premier	off			•
2. Sakti PSC	95	3719	KrisEnergy	off			•
3. Bulu PSC	42.5	697	KrisEnergy	off	•		•
4. Bala-Balakang PSC	85	838	KrisEnergy	off		•	•
5. Udan Emas PSC	100	1070	KrisEnergy	on			•

Oil production in Indonesia began in the 19th century and today almost 300 contract areas are under licence, nearly 80% of which are located in the mature, oil-producing western basins where infrastructure is well developed. Gas accounts for more than two-thirds of Indonesia's remaining hydrocarbon reserves and its commercialisation is increasingly important in the country's energy mix.

We operate four production sharing contracts (PSCs) - Bulu, Sakti, Bala-Balakang and Udan Emas, two of which contain gas discoveries (Bala-Balakang in the Makassar Strait and Bulu in the East Java Basin) and hold a non-operating working interest in the Andaman II PSC, offshore North Sumatra.

Andaman II PSC signed
on 5 April 2018

Offshore North Sumatra

The Andaman II PSC is an exploration block over the North Sumatra Basin, offshore North Sumatra, covering an area of 7,400 sq km in water depths ranging from 200 metres to 1,950 metres.

In 2012/2013, during a pre-PSC Joint Study Agreement (JSA) period, 1,427 km of 2D seismic data was acquired over Andaman II.

Following notification of award in January 2018, the Andaman II PSC was officially signed on 5 April 2018 with KrisEnergy holding 30%, Premier 40% (operator) and Mubadala 30%.

Source:
Upper Oligocene, Lower to Middle Miocene shales
Reservoir:
Pre-rift, Upper Oligocene clastics
Trap:
Tilted fault blocks
Seal:
Oligocene shales

Sakti forms gas
aggregation potential

Offshore East Java

The Sakti PSC is an exploration block covering 3,719 sq km offshore East Java where water depths in the East Java Sea are between 50 and 60 metres. It is adjacent to the KrisEnergy-operated Bulu PSC.

KrisEnergy was awarded operatorship with a 95% working interest in the Sakti PSC in February 2014. The other partner is Golden Heaven Jaya Ltd. with 5%.

In 2014, we acquired 1,202 km of 2D and 401 sq km of 3D seismic data in the Sakti PSC. An exploration well was drilled in 2015, which encountered gas with a high level of carbon dioxide.

Source:
Oligocene-Miocene coals
Reservoir:
Late Oligocene to Early Miocene Carbonate - Early to Middle Miocene sands
Trap:
Structural and Stratigraphic Plays
Seal:
Middle Miocene-Pliocene shales

Bulu PSC

Lengo gas development
approved, FEED in progress

The Bulu PSC comprises three areas totalling 697 sq km offshore East Java where water depths in the East Java Sea are between 50 and 60 metres.

The block contains the Lengo gas development for which approval was obtained from the Indonesian authorities at the end of 2014. Front-end engineering and design is underway and the geotechnical surveys have been completed at the offshore platform facilities location, along the pipeline route as well as at the site for the onshore receiving terminal. The Lengo gas field is expected to reach a plateau production rate of 70 mmcfd. To view details of the Lengo development, click here.

KrisEnergy acquired a 42.5% working interest in the Bulu PSC in October 2011 and took over operatorship for the block. The other partners are Coro Energy with 42.5%, PT Satria Energindo with 10% and PT Satria Wijayakusuma with 5%.

Source:
Eocene deltaic and lacustrine coals and carbonaceous shales, Early Miocene marine shales and Plio-Pleistocene mudstones
Reservoir:
Oligo-Miocene carbonates and mid Miocene marine sandstones
Trap:
Oligo-Miocene carbonates and mid Miocene marine sandstones
Seal:
Miocene regional shales

3D broadband seismic data acquired in 2014

The Bala-Balakang PSC (formally the Tanjung Aru PSC) covers 838 sq km over the offshore southern edge of the Kutai Basin, a prolific hydrocarbon province in the Makassar Strait region. Water depths in the area range from 20 metres to over 1,000 metres. Following approval of the second exploration relinquishment period, the acreage was reduced from 3,143 sq km to 838 sq km in September 2017.

KrisEnergy is the operator of the exploration block with an 85% working interest and Natuna Ventures Pte Ltd has 15%.

In 2014, we completed a 502 sq km 3D broadband seismic acquisition program.

Source:
Miocene coals and carbonaceous shales
Reservoir:
Mio-Pliocene channel/fan complexes
Trap:
Structural and stratigraphic
Seal:
Mio-Pliocene intra-formational shales

Udan Emas PSC

2D seismic program completed in June 2015

The Udan Emas PSC covers 1,070 sq km in the neck of the Bird’s Head area onshore West Papua. It lies in the Bintuni Basin, a proven prolific gas province containing the Tangguh gas field and associated liquefied natural gas facilities.

KrisEnergy is the operator of the exploration block and holds 100% working interest. We completed a 300 km 2D seismic aquisition program in 2015. To view details of the seismic program, click here.

In August 2015, KrisEnergy received an award from the Ministry of Energy and Mineral Resources Republic Indonesia in recognition of zero lost time injuries during more than two million man-hours spent on a 300 km 2D transition seismic acquisition program in the Udan Emas PSC in West Papua.

Source:
Permian - Jurassic carbonaceous shales and coals
Reservoir:
Jurassic sandstones
Trap:
Structural stratigraphic
Seal:
Intra-formational Mesozoic shales

Contract area	Working interest (%)	Area (sq km)	Operator	Onshore/ offshore	Production/ near production	Development unclarified	Exploration
1. B8/32 & B9A	4.6345	2072	Chevron	off	•		•
2. G6/48	30	371	KrisEnergy	off	•	•	•
3. G10/48	89	247	KrisEnergy	off	•	•	•

Gulf of Thailand is a core area for KrisEnergy

The majority of Thailand's petroleum reserves have been discovered offshore in the Gulf of Thailand although exploration and drilling activity has increased in onshore areas in the last few years. Gas accounts for roughly four-fifths of Thailand's remaining hydrocarbon reserves.

KrisEnergy is operator of the G10/48 licence, in which the Wassana oil field commenced production on 14 August 2015, and the G6/48 development block for which a plan of development for the Rossukon oil field was approved in November 2015.

We hold two non-operated licences in the Gulf of Thailand - the B8/32 and B9A blocks in the northern section of the Pattani Basin. B8/32 holds the main Benchamas oil and gas producing field, while the B9A licence ceased production in October 2017 and will be relinquished once abandonment is completed.

A typical oil or gas field in the Gulf of Thailand has multiple fault blocks with hydrocarbons trapped in multiple reservoirs. More than 80% of Thailand's oil and gas production is located in the Pattani Basin.

B8/32 is a producing assets

Blocks B8/32 (oil and gas production) and B9A cover a combined gross acreage of 2,072 sq km in the Gulf of Thailand over the northern Pattani Basin where water depths range between 42 metres and 113 metres.

KrisEnergy acquired a 4.6345% non-operated working interest in blocks B8/32 and B9A in April 2010. Chevron is the operator of B8/32 & B9A with a 51.66% interest. The other partners in the blocks are PTTEP with 25%, MOECO with 16.71% and Palang Sophon with 2%.

Source:
Eocene to Oligocene lacustrian shales and Miocene fluvio-deltaic shales
Reservoir:
Oligo-Miocene fluvio-deltaic sandstones
Trap:
Tilted fault blocks
Seal:
Oligo-Miocene intra-formational shales

G6/48

Successful Rossukon drilling in 2015,
production area approved

G6/48 covers 371 sq km over the Karawake Basin on the western margin of the Pattani Basin in the Gulf of Thailand. Water depths in the area range from 60 metres to 70 metres.

The original Rossukon oil discovery was drilled in 2009. In March 2015, KrisEnergy drilled four exploration wells - Rossukon-2, Rossukon-2ST, Rossukon-3 and Rossukon-3ST - all of which successfully encountered oil and/or gas. A production area application for the development of the Rossukon accumulations was submitted to the authorities in June 2015 and approved in November 2015.

KrisEnergy holds a 30% working interest in the G6/48 reservation area and 100% working interest in the G6/48 production area, which contains the Rossukon oil development. The other partners in the G6/48 reservation area are Mubadala Petroleum with 30% and Northern Gulf Petroleum with 40%.

Source:
Eocene to Late Oligocene lacustrine and Miocene fluvio-deltaic shales
Reservoir:
Oligo-Miocene fluvio-deltaic sandstones
Trap:
Tilted fault blocks
Seal:
Oligo-Miocene intra-formational shales

G10/48

Wassana first oil
on 14 August 2015

G10/48 covers 247 sq km in the Gulf of Thailand over the southern margin of the Pattani Basin in water depths up to 60 metres.

The G10/48 licence area contains the Wassana, Niramai, Mayura and Rayrai oil discoveries. The Wassana oil field commenced oil production on 14 August 2015. The field comprises 18 development wells producing to a mobile offshore production unit with oil transfered to a floating storage and offloading vessel. A brief video detailing the Wassana development project can be viewed here.

KrisEnergy took over operatorship of G10/48 in May 2014 and holds an 89% working interest. Palang Sophon holds the remaining 11%.

Source:
Eocene to Oligocene lacustrine and Miocene fluvio-deltaic shales
Reservoir:
Oligo-Miocene fluvio-deltaic sandstones
Trap:
Tilted fault blocks
Seal:
Oligo-Miocene intra-formational shales

Contract area	Working interest (%)	Area (sq km)	Operator	Onshore/ offshore	Production/ near production	Development pending	Development unclarified	Exploration
1. Block 115/09	100	7382	KrisEnergy	off				•

KrisEnergy is building a core area offshore Vietnam

There are more than 90 contract areas under licence in Vietnam, mostly located in the Nam Con Son Basin. KrisEnergy holds working interests in one exploration licence, Block 115/09 covering 7,382 sq km in the southern Song Hong Basin, offshore central Vietnam.

Although lightly explored with just over 224 exploration, appraisal and production wells drilled to date, the Song Hong Basin contains some 35 fields, predominantly gas, with expected ultimate reserve recoveries of approximately 14 trillion cubic feet of gas and 198 million barrels of oil and condensate*. The Phu Khanh Basin is less explored with only five exploration wells drilled to date. It is notable, however, that four of the wells were non-commercial oil or gas discoveries, indicating the attractiveness of the region.

* IHS, 2015

Block 115/09

offshore, operated

Block 115/09 covers an area of 7,382 sq km in the southern Song Hong Basin where water depths range mainly between 60 metres and 200 metres.

KrisEnergy holds a 100% working interest in Block 115/09 and is the operator of the exploration block.

Source:
Oligo-Miocene lacustrine shales and Mio-Pliocene deltaic/marine shales
Reservoir:
Oligocene to Pliocene deltaic, marginal marine and turbidite fan sandstones
Trap:
Tilted fault blocks, faulted anticlines and turbidite fans
Seal:
Oligocene to Pliocene regional and intra-formational shales

Block 120

33.33% working interest,
offshore

Block 120 covers 6,869 sq km offshore central Vietnam, overlying the Quang Ngai Graben in the north and central section of the contact area and passing into the Phu Khanh Basin in the southern portion of the block. Water depths in the contract area range from 50 metres to 650 metres.

In 2015, a 502 sq km 3D seismic acquisition program was completed.

KrisEnergy holds a 33.33% non-operated working interest in Block 120. Eni Vietnam is the operator of Block 120 with 66.67% working interest.

Source:
Eocene to Oligocene lacustrine shales
Reservoir:
Oligocene fluvial sands, Miocene carbonate reefs and turbidite fan sands
Trap:
Tilted fault blocks, faulted anticlines, carbonate reefs and turbidite fans
Seal:
Oligo-Miocene intra-formational shales

Contract area	Working interest (%)	Area (sq km)	Operator	Onshore/ offshore	Production/ near production	Development pending	Development unclarified	Exploration
1. Block 9	30	1770	KrisEnergy	on	•			•
2. SS-11	45	4475	Santos	off				•

Bangladesh’s hydrocarbon industry is dominated by gas.

Bangladesh's hydrocarbon industry is dominated by natural gas, which is the main source of domestic energy. However, demand for gas has risen faster than supply, leaving the country facing shortages.

KrisEnergy acquired a 30% working interest and operatorship of Block 9 onshore Bangladesh in 2013. In March 2014, we were awarded a 45% non-operated working interest in the SS-11 exploration block.

Block 9 contains the Bangora gas field

Block 9 covers 1,770 sq km over the eastern margin of the onshore Bengal Basin, approximately 50 km east of Dhaka. It contains the Bangora gas producing field and the Lalmai gas discovery. Bangora production is between 105 mmcfd and 110 mmcfd.

KrisEnergy signed a sales and purchase agreement to acquire a 30% working interest in, and operatorship of, Block 9 in April 2013. The transaction was completed in December 2013 with an effective date of 1 January 2013. The other partners in Block 9 are Niko Resources with 60% and BAPEX with 10%.

Source:
Late Eocene to Late Oligocene and Miocene marine carbonaceous shales
Reservoir:
Mio-Pliocene fluvial-deltaic and marine shelfal sandstones
Trap:
Channelised anticline with a strong stratigraphic component
Seal:
Intra-formational Mio-Pliocene fluvial and deltaic shales. Shale filled erosional channels often act as lateral and/or top seals

SS-11, offshore exploration

SS-11 covers an area of 4,475 sq km in the Bay of Bengal over the Bengal Fan. The majority of the block lies in shallow waters up to 200 metres with the furthest southwest portion extending into water depths up to 1,500 metres.

KrisEnergy holds a 45% non-operated working interest in the SS-11 exploration block. Santos is the operator with 45% and BAPEX holds 10%.

In 2015, a 3,146 km 2D seismic acquisition program was completed in the exploration block.

Source:
Tertiary deltaic and marine shales with both thermogenic and biogenic potential
Reservoir:
Stacked Mio-Pliocene deltaic, slope and basin floor fan sandstones
Trap:
Structural and stratigraphic
Seal:
Intra-formational Mio-Pliocene deltaic and marine shales