Bumi Armada lines up Indonesian acreage that offer FPSO and FLNG development potential
Malaysian floating production specialist Bumi Armada has spread its upstream wings with the award of a second block offshore Indonesia.
The Kojo production sharing contract is Bumi Armada’s second-operated PSC in Indonesia, after the Akia PSC that it was awarded two years ago.
Acquiring Kojo is aligned with Bumi Armada’s strategy to develop oil and gas discoveries via a floating production, storage and offloading vessel, or with either a floating liquefied natural gas (FLNG) facility or pipeline.
“This leverages our core expertise in providing and operating floating production systems,” the contractor said.
The 8473-square kilometre Kojo PSC is located in the Makassar Strait, between South Kalimantan and South Sulawesi, with water depths ranging from 50 to 1000 metres. The Indonesian authorities estimate its resources at 2.1 trillion cubic feet of gas and 92 million barrels of oil.
The Malaysian operator plans to acquire new 2D seismic to integrate with existing subsurface data to evaluate the potential for development.
By contrast, Akia, off the coast of North Kalimantan, has an estimated resource of 9 Tcf of gas and 2 billion barrels of oil.
Bumi Armada operates the Kojo PSC with a 100% participating interest, while Akia in 2023 was awarded to a consortium comprising Netherlands-registered Pexco Energy and Bumi Armada’s 100%-held subsidiary Armada Etan.
The joint venture’s minimum commitment work programme for Akia during the initial three-year exploration term comprises three geological and geophysical (G&G) studies, and the acquisition and processing of 750 square kilometres of 3D seismic data.
