East Natuna gas field
| East Natuna | |
|---|---|
| Country | Indonesia |
| Region | South China Sea |
| Offshore/onshore | offshore |
| Operator | Pertamina |
| Partners |
Pertamina ExxonMobil Total S.A. PTT Exploration and Production |
| Field history | |
| Discovery | 1970 |
| Production | |
| Estimated gas in place | 222,000×109 cu ft (6,300×109 m3) |
| Recoverable gas | 46,000×109 cu ft (1,300×109 m3) |
| Producing formations | Middle to Late Miocene reefs |
The East Natuna gas field (former name: Natuna D-Alpha block) is a large natural gas field located in the South China Sea off northern Natuna Island, Indonesia. It is within the disagreed area claimed by China.[1]
History
The field was discovered in 1970 by Agip. In 1980, the Indonesian state-owned oil company Pertamina and Exxon formed a joint venture to develop Natuna D-Alpha. However, due to the high CO2 content the partnership was not able to start production.[2] In 1995, the Indonesian government signed a contract with Exxon but in 2007, the contract was terminated.[2][3]
The new partnership was formed in 2011, when the principal of agreement was signed between Pertamina, ExxonMobil, Total S.A. and Petronas.[4][5] In 2012, Petronas was replaced by PTT Exploration and Production.[4][6] As of 2016, negotiations about the new principal of agreement have not finalized and consequently, a production sharing contract is not signed.[7]
Reserves and development
The East Natuna gas field is located in East Natuna Basin covering approximately 310 square kilometres (120 sq mi). The reservoir is within the Miocene Terumbu Formation with a crest at 2,658 metres (8,720 ft) subsea. A maximum column height is 1,638 metres (5,374 ft).[8] The estimated resource in place of the East Natuna field is around 222 trillion cubic feet (6.3 trillion cubic metres), of which total proven reserves of natural gas are 46 trillion cubic feet (1.3 trillion cubic metres), and production is forecast to be around 1.98 billion cubic feet per day (56 million cubic metres per day).[6] The CO2 content of the resource is about 71%.[2]
The development of East Natuna is expected to cost US$20–40 billion. To save costs, the joint development of East Natuna, Tuna block (Premier Oil 65%, Mitsui Oil Exploration 35%), and South Natuna Sea Block B (ConocoPhillips 40%, Inpex 35%, Chevron Corporation 25%). Production is expected to be viable only if the oil price exceeds $100 per barrel. The production is expected to start not before 2030.[7]
References
- ↑ "Jakarta's China Challenge". The Wall Street Journal. 2015-11-17. Retrieved 2016-01-24.
- 1 2 3 "Natuna Gas Field, Indonesia". Offshore Technology. Retrieved 2016-01-24.
- ↑ Hiscock, Geoff (2012). Earth Wars: The Battle for Global Resources. John Wiley & Sons. p. 28. ISBN 9781118152881.
- 1 2 Azmar, Ahmal S. (2013-08-13). "Govt to award PSC to East Natuna contractors". The Jakarta Post. Retrieved 2016-01-24.
- ↑ Cahyafitri, Raras (2015-11-27). "East Natuna development faces possible negotiation delay". The Jakarta Post. Retrieved 2016-01-24.
- 1 2 "PTTEP to replace Petronas in Indonesia East Natuna Project". 2b1stconsulting. 2012-11-13. Retrieved 2016-01-24.
- 1 2 Cahyafitri, Raras (2016-01-07). "Joint operation of Natuna block proposed". The Jakarta Post. Retrieved 2016-01-24.
- ↑ Dunn, P. A.; Kozar, M. G. (1996). "Application of Geoscience Technology in a Geologic Study of the Natuna Gas Field, Natuna Sea, Offshore Indonesia". 25th Annual Convention Proceedings (Indonesian Petroleum Association) 1: 117–130. Retrieved 2016-01-24.