Field development activity in Indonesia has made strong progress in recent weeks, with one project getting the go ahead and others making vital installations.

Exploration work is also moving along at a steady pace, with appraisal drilling and seismic shoots ongoing.

KrisEnergy reports that the Indonesian government has approved the development plan for the Lengo gas field in the Bulu production-sharing contract (PSC) offshore East Java.

The green light means that KrisEnergy can start negotiations for gas sales agreements with potential customers.

The Bulu PSC covers 697 sq km (269 sq miles) in three separate areas—Bulu A, Bulu B and Bulu C—over the East Java Basin in water depths of 50 m to 60m (164 ft to 197 ft). The Lengo gas discovery is located in the Bulu A area and will be developed via four development wells and an unmanned wellhead platform.

A 20-in., 65-km (40-mile) export pipeline will transport the gas directly to shore. Production is due to start about two years after the partners make a final investment decision and is expected to plateau at 1.98 MMcm/d (70 MMcf/d).

The Bulu PSC lies adjacent to the KrisEnergy-operated East Muriah PSC, which contains the East Lengo gas discovery. The operator plans to drill an appraisal well in the East Muriah PSC and, if successful, to develop East Lengo gas via a single well tied back to the Lengo facilities.

KrisEnergy also operates the Sakti PSC, an exploration block adjacent to the Bulu A area, where the company completed 1,202 km (747 miles) of 2-D and 401 sq km (155 sq miles) of 3-D seismic in 2014.

KrisEnergy holds a 42.5% operating stake in the Bulu PSC. The other partners are AWE Ltd. (42.5%), PT Satria Energindo (10%) and PT Satria Wijayakusuma (5%).

McDermott installs Java facilities

McDermott International has completed the installation of a 3,086-ton central processing platform (CPP) topside using the tight-slot float-over method on the Kepodang gas field in the Muriah Working Area offshore Central Java for Petronas unit PC Muriah.

McDermott started operations on this fast-track project one month after the contract was awarded in January 2013.

The work scope included procurement, construction, installation and commissioning of the CPP topside and jacket, a wellhead module, a wellhead platform and jacket, a 2.7-km (1.7-mile) long 10-in. diameter infield flowline and installation of remote control facilities at an onshore receiving facility. The total weight of overall facilities is close to 11,000 tons.

The Kepodang Field is located about 180 km (112 miles) northeast of Semarang, Central Java, in water depths of up to 755 m (230ft) and is expected to supply gas to the Tambak Lorok power plant in Semarang, Central Java.

McDermott International also has completed the transportation and installation of a Yoke-type single point mooring tower and hook up to a floating storage offloading (FSO) vessel for PT Rekayasa Industri in the Banyu Urip Field in the Java Sea.

PT Rekayasa Industri was appointed by Mobil Cepu Ltd., an Exxon Mobil subsidiary, as one of the engineering, procurement, construction and installation contractors for the field.

The McDermott Derrick Barge 30 undertook the mooring tower installation and hook up to the FSO. The Yoke-type single point mooring tower is a critical component, which enables mooring of the FSO unit at the site, McDermott said.

The Banyu Urip full field development is planned to produce 165,000 bbl/d of oil from facilities that include 48 wells on three well pads, a central processing facility and a 97-km (60-mile) pipeline to transfer the processed oil to a 1.7 Mbbl FSO unit in the Java Sea.

Lofin-2 drills ahead

On the exploration side, Australia’s Lion Energy reports that the Lofin-2 appraisal well in the Seram (non-Bula) PSC in eastern Indonesia is drilling ahead.

The well has reached 2,295 m (7,529 ft) measured depth (MD) and 13.375-in. casing has been run and cemented.

The well was spudded on Oct. 31, 2014, and has a planned total depth of 5,425 m (17,798 ft) MD. The PSC is operated by CITIC Seram Energy.

Lion said the well “has progressed smoothly to date and is on schedule,” adding “The forward program is to drill a 12.25-in. hole to approximately 3,657 m (11,998 ft) MD, at which point 9.625-in. casing will be set, prior to drilling ahead in 8.5-in. hole with the top of the primary objective, the Manusela Formation, expected at around 4,514 m (14,809 ft) MD.

This objective section is forecast to be penetrated in early February 2015, Lion said.

Seismic activity

CGG has completed processing of the Bade FALCON airborne gravity gradiometer (AGG) multiclient survey in the Papua Foreland Basin, East Indonesia.

CGG acquired more than 28,000 sq km (10,811 sq miles) of FALCON AGG data over onshore PSCs, joint study agreements (JSAs) and open acreage in a highly underexplored region of West Papua along trend from multi-Tcf gas fields and recent oil discoveries in Papua New Guinea, CGG said.

Meanwhile, Norway’s MCG is undertaking two new multiclient 2D seismic surveys offshore Indonesia.

The Lombok survey is located northeast of Bali and totals 1,800 km (1,118 miles) and the East Sulawesi survey will cover 1,000 km ((621 miles).

The surveys started during December and are being acquired by the Nordic Bahari vessel. The surveys will take about 60 days to complete.

Cue farms into Sumatra PSC

Cue Energy has sealed a farm-in agreement with Bukit Energy to acquire a 12.5% stake in the Mahato PSC onshore Central Sumatra, subject to government approval.

Bukit will retain a 25% stake in the PSC following the move. The 5,600-sq-km (2,162-sq-mile) Mahato PSC lies in a “highly prospective area in the prolific Central Sumatra basin close to several producing oil fields,” including Indonesia’s largest onshore oil fields: the Minas oil field (more than 5 Bbbl) and the Duri oil field (more than 3 Bbbl), Cue said.

The block contains multiple appraisal and exploration drilling opportunities with two wells currently planned for 2015.

The 2015 work plan includes an appraisal well delineating the possible extension of the Petapahan Field into the Mahato PSC, an exploration well nearby and seismic acquisition to further high grade exploration prospects for future drilling. As part of the farm-in, Cue’s share of costs for the two wells and seismic is capped by Bukit.

“The Mahato PSC is surrounded by existing infrastructure, which is expected to result in short cycle time to development for any discoveries,” Cue noted.

Meanwhile, Indonesia’s state-owned Pertamina is being lined up to become the operator and majority shareholder of the offshore Mahakam Block after the contract of current operator Total expires in 2017, an Energy Ministry official said.

Total’s contract to operate the offshore Mahakam Block is one of many contracts due to expire under uncertain terms, a stumbling block that the new government has pledged to address quickly.