The Wain Block, located in the onshore Kutai Basin of East Kalimantan, Indonesia, embarked on its oil and gas exploration journey following a contract signing on January 16, 2007. The contract, delineated for 30 years, outlined a dedicated initial exploration phase of 6 years, with the provision for a subsequent 4-year extension. This exploration endeavor is scheduled to conclude by January 15, 2037. Initially, the exploration covered an extensive area of 1149.3 square kilometers, which was later streamlined to a focused 230 square kilometers, effectively retaining 20% of the original exploratory footprint.
The operational and financial backing of the Wain Block project is spearheaded by Indo Sino, holding a commanding 90% participating interest, while PPL accounts for the remaining 10%. This partnership dynamic underscores a collaborative effort to maximize the block's hydrocarbon potential.
In the nascent stages of the project's life cycle, specifically during the first three-year firm commitment phase spanning 2007 to 2010, the consortium successfully executed a comprehensive suite of geological surveys, laboratory analyses, and geophysical and geological (G&G) studies. A significant milestone was achieved in 2009 by completing 100 kilometers of 2D/Pseudo 3D seismic mapping. The drilling campaigns during this phase saw the inception of two exploratory wells: South Karamba-1, drilled in 2009, unfortunately resulting in a dry outcome, and KUD-1, in 2015, where the gas discovery was made, marking a pivotal moment in the project's trajectory.
Proceeding into the second three-year working program from 2010 to 2013, the focus was on enhancing geological, geophysical, and reservoir (GGR) understanding through further studies and laboratory analyses. However, this phase was only partially completed, signifying the challenging nature of hydrocarbon exploration and the adaptability required in response to subsurface findings.
From 2013 to 2017, they encapsulated an additional working program during the Project's Joint Working Environment (PJWE). This phase was marked by strategic activities such as submitting the Plan of Development (POD) for the promising Karamba Field. Reserve estimations underwent rigorous assessments, with Gaffney, Cline & Associates (GCA) in 2016 certifying reserves at 49 BSCF (1C) and 97 BSCF (2C). Subsequent audits by Rose & Associates in 2020 slightly adjusted these figures to 44 BSCF (C1) and 93 BSCF (2C), refining the project's hydrocarbon inventory assessment.
The approval of the POD on April 4, 2018, set the stage for the next development phase. The Karamba Updip, described as a small faulted anticline, revealed substantial gas resources, with an estimated 77.32 billion cubic feet of gas (2P) by LAPI ITB in 2017. The proven and probable (2P) risked recoverable reserves were pegged at 37.24 BCFG, providing a clearer picture of the field's commercial viability.
The development plan outlined in the POD proposed an aggressive approach to harness these resources, including one re-entry well and the drilling of two production wells to achieve a steady production rate of 7.35 million standard cubic feet per day (MMSCFD). The Front End Engineering Design (FEED) study, which concluded in December 2021, was crucial in transitioning the project from exploration and appraisal to development and production phases.
A significant commercial milestone was the finalization of a Gas Sales Agreement (GSA) with Pertamina (Persero), securing a sales volume of 7.35 MMSCFD over a 12-year plateau period, priced at $5.42 per million British thermal units (MMBtu). This agreement not only underlines the economic potential of the Wain Block but also fortifies the strategic partnership between the operating consortium and Indonesia's national oil company, setting a collaborative framework for the sustainable development of the nation's hydrocarbon resources.
