ConocoPhillips has had a presence in Indonesia for more than 40 years, operating six production-sharing contracts (PSCs). Three of the blocks are located offshore: the South Natuna Sea Block B PSC, the Kuma PSC and the Arafura Sea PSC. The three onshore PSCs are the Corridor Block PSC and the South Jambi ‘B’ PSC, both in South Sumatra, as well as the Warim PSC in Papua.
South Natuna Sea Block B PSC
Operator: ConocoPhillips (40.0%)
Co-venturers: INPEX (35.0%), Chevron (25.0%)
The PSC was awarded in 1968, and first production came on line in 1979. The term of the PSC was extended in 1998 and is currently scheduled to expire in 2028. The block is located in approximately 300 feet of water and has three producing oil fields, as well as 11 gas fields in various phases of development. Four of the gas fields also have recoverable oil or condensate volumes.
In 2009, the North Belut Field began production. These fields are part of the continuing development of the block to support existing gas sales commitments, as well as new LPG sales to the local Indonesian market.
Natural gas from the PSC is sold through two long-term gas sales contracts. The PSC is part of the West Natuna Gas Supply Group, a group of three PSCs that supply gas to Sembgas in Singapore. The PSC also supplies gas to Petronas in Malaysia under a separate contract.
Corridor Block PSC
Operator: ConocoPhillips (54.0%)
Co-venturers: Talisman (36.0%), Pertamina (10.0%)
The Corridor Block PSC is located in South Sumatra and covers a contract area of 911 square miles. The PSC was awarded in 1983 and is scheduled to expire in 2023 under the current extension. The block consists of six oil fields and six natural gas fields. The principal oil-producing fields are Puyuh, Supat and Rawa, and the principal gas fields are Suban, Sumpal, Dayung and Gelam.
Natural gas from the PSC is sold through long-term sales contracts to the domestic and Singapore markets. In 2010, ConocoPhillips and PT Chevron Pacific Indonesia (CPI) signed gas sales agreements to convert the existing gas-for-oil exchange agreements into gas sale and purchase agreements and agreed to deliver up to 514 trillion BTUs of additional gas from the Corridor Block PSC fields to CPI’s Duri Steamflood. Delivery of the new volumes is anticipated to begin in 2013. Unitization of the Suban natural gas field was finalized in 2011, and as a result, 10 percent of the field’s proved reserves became attributable to an adjacent PSC.
South Jambi ‘B’ PSC
Operator: ConocoPhillips (45.0%)
Co-venturers: PetroChina (30.0%), Pertamina (25.0%)
The South Jambi ‘B’ PSC is located in South Sumatra. The PSC was awarded in 1990 and will expire in 2020. There are three gas fields in various phases of development.