Operations in Indonesia
Glagah Kambuna TAC
Glagah Kambuna TAC
Serica 65% (operator), GFI 35%
The Glagah Kambuna TAC (Technical Assistance Contract) comprises an area of approximately 380 square kilometres and lies in about 40 metres of water 40 kilometres offshore North Sumatra. Serica has a 65% working interest in the Glagah Kambuna TAC and is the operator of the block.
The Glagah Kambuna TAC contains two undeveloped but tested hydrocarbon discoveries: the Glagah discovery which was drilled by Caltex in 1985 and the Kambuna Field which was discovered by Bow Valley in 1986. In September 2005, Serica commenced drilling the company’s first operated well, the Kambuna #2 appraisal well. The well was drilled to a depth of 7,963 ft and tested gas at 17.5 mmscfd and over 1,500 bpd of 55° API gravity condensate on a restricted choke.
A report prepared by consultants RPS Energy plc estimates that the gross probable gas and condensate reserves of the Upper Belumai reservoir in the Kambuna field are 25.7 million boe.
Serica’s Plan of Development for the Kambuna field was approved by the state oil and gas company Pertamina in 2006 and a 3D seismic survey over the Kambuna field was completed later that year. In the first stage of development a two-phase pipeline to shore will be installed in 2008 and will convey gas and condensate to market. When field performance has been established, it is likely that a floating production, storage and offtake vessel ("FPSO") will be installed in order to extract the condensate offshore and thereby provide more pipeline capacity for increased gas production.
A wellhead support tower is under construction in Balikpapan, Indonesia and Serica has secured a drilling rig to install the tower in the field in the fourth quarter of 2007. The rig will then be used to drill two Kambuna development wells and the Kambuna #2 well will be recompleted for production. In 2008 the pipeline to shore and the onshore facilities will be constructed and the field is expected to come on production at the end of 2008.
Gas and liquid sales negotiations are proceeding with several interested parties, including Pertamina, the state oil and gas company, which operates a refinery and gas liquids plant in the area. The market for Kambuna gas is in North Sumatra and includes the PLN power plant at Belawan and the city of Medan, one of Indonesia’s largest cities. The area has a severe gas shortage at present and power is frequently interrupted.