The Energy and Mineral Resources Ministry announced its plans to auction the West Kampar oil and gas block (WK Migas). The 894.8-square-kilometer oil and gas block is located onshore in Riau and North Sumatra.
The ministry’s oil and gas director general, Djoko Siswanto, revealed that the West Kampar block was able to produce up to 1,000 barrels per day, a good number to increase national oil and gas production.
Djoko further explained the reason why the West Kampar Block is being put up for auction.
“West Kampar is a productive block with huge potential. But it was not seriously explored [by the previous operator],” Djoko said at the ministry’s office on Wednesday.
According to Djoko, the West Kampar Block’s remaining reserves stood at 8.3 million metrics stock tank barrels (MMSTB). While the estimated resource from three prospects and 20 leads is 4.3 million barrels of oil equivalent (MMBOE).
Djoko also said the winner would be obliged to dig four exploration wells and conduct seismic exploration work.
“From 20 leads and three prospects, if we can find it all through seismic and well digging, we will gain 4.4 billion barrels — a huge potential,” Djoko said.
The terms and conditions for West Kampar’s auction include, a US$5 million signature bonus and $59 million five-year working commitment covering geological and geophysical (G&G) study, 400 sq km 3D seismic work and the exploration of four wells.
The West Kampar Block’s bidding documents are accessible from Sept. 19 until Oct. 22. The submission of qualification documents (financial statements and company profile) will take place on Oct. 23-30. Submission for participation documents is due on Nov. 12.