Indonesia: Santos to evaluate Paus Biru prospect with new exploration well

Australia’s Santos will evaluate the Paus Biru prospect located in the Sampang PSC offshore Indonesia with a new exploration well, which will be drilled in the fourth quarter of 2018.


Santos is the operator of the Sampang Production Sharing Contract (PSC) with a 45% interest with Singapore Petroleum Company (40%) and Cue Energy (10%) as its partners.


According to Cue Energy’s statement on the 27th December, the Sampang PSC Joint Venture has approved the drilling of the Paus Biru-1 exploration well.


The Paus Biru prospect is located in the Sampang PSC, Indonesia, 27 kilometres east from the producing Oyong gas field. Paus Biru-1 will test a four way dip structural closure targeting the Pliocene Mundu Formation analogous to the hydrocarbon producing zone in Oyong and Wortel gas fields.


Cue Energy said that the location of the well was determined based on recent 3D seismic mapping with visible amplitude anomalies. Geophysical and geotechnical site surveys are currently underway to determine the final well location. The water depth in the area is approximately 48 metres and the well is planned to be drilled in the fourth quarter 2018 to a depth of 650 metre using a jack up drilling rig, which is currently being sourced, Cue said.


The company also added that the Paus Biru-1 will fully evaluate the Paus Biru prospect and a comprehensive evaluation suite will be run on the well.


Post drilling, the well will be plugged and abandoned in all outcomes. If successful, a horizontal development well would be drilled at a later date and tied into Oyong and the Grati onshore gas processing facility.


Santos, as the operator of the PSC, will operate the drilling of the well. Santos has experience operating well drilling in the Sampang PSC and the adjoining Madura Offshore PSC, including two wells in 2016.


Cue concluded that, if successful, the Paus Biru prospect will not only directly add reserves to the Sampang PSC but also further extend the life of the Oyong and Wortel fields by supporting the field economics.