Indonesian Oil & Gas Book 2008 80 Kakap PSC Fact Sheet Type of Contract : PSC Location : Riau Islands (Offshore) Area : 2,000 sq km Operation Status : Production Operator : Star Energy (Kakap) Ltd. Contract Signing : March 22, 1975 March 22, 1998 (Amend) April 23 , 2005 (Effective Extension) End of Contract : April 23, 2028 Participants : Star Energy (31.25%); Premier Oil (18.75%); Medco Energi (16.0%); Singapore Petroleum Company (15.0%); Pertamina (10.0%); Santos Limited (9.0%) � � � � � � � � � � � � � � � � � � � � � � � � � � � Natuna Besar Island ������ ��������������� ���������������������� ������ � ������� ������������ Overview The Kakap PSC is located in the remote but highly petroliferous West Natuna Sea, approximately 1,000 km north of Java and 250 km east of the Malay Peninsula. The block was originally awarded to Phillips Petroleum Company Indonesia and Tenneco Indonesia Inc in 1975. The Kakap block comprises two separate areas: South Kakap, which contains all of the producing fields and discoveries, and North Kakap, which is relatively unexplored, but contains some exploration prospects and leads. Until 2001, the block had been developed only for oil production. In 1996, three PSCs (Block B, Block A and Kakap) formed the "West Natuna Group", with the purpose of jointly marketing gas from the West Natuna Area to Singapore. In January 1999, Pertamina, Singapore's SembCorp Gas Pte Ltd and the West Natuna Group entered into a definitive agreement, for the sale and purchase of approximately 2.5 trillion cubic feet (TCF) of gas over 22 years from specified fields in the PSCs operated by the West Natuna Group. Kakap was expected to contribute approximately 300 BCF to the total volume. The construction of the Kakap upstream facilities and the West Natuna Transportation System was completed in December 2000,
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Indonesian Oil & Gas Book 2008
80
Kakap PSC
Fact SheetType of Contract : PSCLocation : Riau Islands (Offshore)Area : 2,000 sq kmOperation Status : ProductionOperator : Star Energy (Kakap) Ltd.Contract Signing : March 22, 1975 March 22, 1998 (Amend) April 23 , 2005 (Effective Extension)End of Contract : April 23, 2028Participants : Star Energy (31.25%); Premier Oil (18.75%); Medco Energi (16.0%); Singapore Petroleum Company (15.0%); Pertamina (10.0%); Santos Limited (9.0%)
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Overview
The Kakap PSC is located in the remote but highly petroliferous West Natuna Sea, approximately 1,000 km north of Java and 250 km east of the Malay Peninsula. The block was originally awarded to Phillips Petroleum Company Indonesia and Tenneco Indonesia Inc in 1975. The Kakap block comprises two separate areas: South Kakap, which contains all of the producing fields and discoveries, and North Kakap, which is relatively unexplored, but contains some exploration prospects and leads.
Until 2001, the block had been developed only for oil production. In 1996, three PSCs (Block B, Block A and Kakap) formed the "West Natuna Group", with the purpose of jointly marketing gas from the West Natuna Area to Singapore.In January 1999, Pertamina, Singapore's SembCorp Gas Pte Ltd and the West Natuna Group entered into a definitive agreement, for the sale and purchase of approximately 2.5 trillion cubic feet (TCF) of gas over 22 years from specified fields in the PSCs operated by the West Natuna Group. Kakap was expected to contribute approximately 300 BCF to the total volume.
The construction of the Kakap upstream facilities and the West Natuna Transportation System was completed in December 2000,
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Working Areas
approximately four months ahead of schedule and under budget. The upstream facilities required for the project were placed into service in early December 2000 and the 28-inch, 650-km West Natuna Transportation System (WNTS) was commissioned at the end of 2000. Actual gas sales began in January 2001, six months prior to the commencement of the full sales contract on July 15, 2001.
The Kakap PSC co-owns of WNTS operated by ConocoPhillips. The owners of WNTS are: • Block B (43.1%), operated by ConocoPhillips;• Block A (36.9%), operated by Premier Oil; and• Kakap (20%), operated by Star Energy.
Production
Oil and gas are produced at ten fields, that is KF, KH, KG, KRA, Jangkar, Nelayan, KG-5A, KRN, KR and KRA South. The output is sent to four main production platforms: KF, KH, KG and KRA.
Of a total of 46 wells comprising 54 strings, 34 produces oil, seven produces gas, two is used for gas injection and 11 are shut-in.
In 2006, Kakap block produced 2,261,705 barrels of oil, 287,180 barrels of condensate and 33,088,628 MSCF of gas.
All the oil and condensate are sent to Kakap Natuna FPSO for processing and storage before being transferred to tankers for export. Meanwhile, gas is processed at the KF platform before being delivered through WNTS to Singapore.
Recent Development
To maintain Kakap's commitment to provide a reliable supply of pipelined gas into Singapore, Star will soon commence
development of shallow gas reserves overlying the producing KG oilfield.
Drilling of the KG West-1 subsea development well is expected to be completed in the third quarter of 2007. Engineering works planned for 2007 include designing a 2.3 kilometer long flowline and well control umbilical to connect KG West-1 to the KG Platform and installation of a 10 inch diameter gas pipeline connecting KG platform to the KF Platform 11 kilometers to the south. From KF the gas will enter the export pipeline to Singapore. Gas production from this project is slated to begin in April 2008.
In an effort to reduce the offshore construction costs, the KG gas development will be combined with two other construction projects, namely the installation of flowline and subsea well control umbilical between the 2006 Lukah-1X gas discovery and the KG Platform and reactivation of the KR-1X oil well. Both of these projects will also add to Kakap's production in early 2008.
