The Discovery of the Geng North Gas Field
On October 2nd, 2023, ENI proudly revealed the monumental Geng North-1 discovery, located offshore East Kalimantan, Indonesia.
This groundbreaking achievement was realized after drilling to a total depth of 5,025m using the West Capella drillship in water depths of 1,947 meters. The well encountered a 50-meter gas column in middle Miocene sandstone with exceptional reservoir quality.
The subsequent well production test revealed an estimated capacity of 80-100 MMSCFD and 5,000-6,000 BPD of condensate. The Geng North discovery is estimated to contain in-place resources of 5 TCF of gas and 400 million barrels of condensate solidifying Geng North’s status as one of the largest global discoveries in 2023.
The Long and Winding Road That Led to The Discovery
This article delves into the intricate path that led to the awe-inspiring Geng North-1 discovery, exploring the collaborative efforts, setbacks, and expertise that shaped this remarkable exploration journey.
In 2010, PT Baruna Nusantara Energi and Niko Resources Ltd orchestrated a Joint Study with UPN University, Yogyakarta, which paved the way for the North Ganal block to be tendered as a direct offer block.
The subsequent formation of a consortium with Statoil, Eni, Niko, and GDF in 2011 secured the North Ganal Production Sharing Contract (PSC). In addition, the consortium’s working interests were divided by the geologic interests of each party defined by a seismic horizon. ENI and GDF were focused on the Pliocene and upper Miocene; Statoil and Niko were focused on the middle Miocene.
Since 2014, the working interests in the block evolved, leading to the current consortium of ENI, Neptune, and PT AEI. The collaboration showcased adaptability and unity among industry players.
In 2012, the consortium drilled the Lebah-1 well. The well is an extension of the Jangkrik discovery trend. Unfortunately, the main target was wet. A secondary target was successful, and the surrounding amplitudes could contain upwards of 500 BCF of gas.
Geng North well was delineated by previous drilling. In early 2001 Unocal drilled the Gula 1 and 2 wells (inboard of Geng North); Gula-1 had 260-ft net gas pay in Miocene slope channel sands. In 2013 a consortium of Niko Resources, Statoil, and BPE drilled the Panada-1 well (outboard of Geng North) testing for the basin floor equivalent of the Gula Miocene slope channel sands; unfortunately, the well was too outboard, and the interval was a thick sequence of siltstones. These wells set up the geologic frame for Geng North – slope channel sands inboard and distal siltstones outboard. ENI reprocessed the 3D seismic in 2015 and identified the Geng North prospect in detail.
Drilling of Geng North was delayed by the oil price crash in 2014 and ENI’s activities associated with the Jangkrik development. Geng North was rescheduled to be drilled in 2020 but the COVID pandemic delayed the drilling until 2023.
ENI, the operator of the block is the major player in the East Kalimantan deepwater. ENI has been remarkably successful in the last decade in exploration worldwide. ENI’s expertise in seismic processing and efficient deepwater drilling led to the discovery.
PT AEI, the minority partner, evolved from BNE, BPE, and Niko. The shareholders of this company have been actively exploring Indonesia since 1998. They are the key personnel who brought the first deep-water field in Asia to production, the West Seno Field, and are responsible for multiple deepwater discoveries in East Kalimantan including the project currently known as IDD. Knowledge of Indonesian geology, especially in East Kalimantan aided by fresh ideas and creativity of individuals in this small company contributed to this discovery.
It has been thirteen years since the block was carved out as a JSA till the well was drilled. It is a long winding road of an exploration journey which beyond any doubt needs perseverance from all key stakeholders.
MIGAS, the institution responsible for creating and managing the JSA, has played a pivotal role. Particularly noteworthy is MIGAS’s ability to recognize the innovative ideas put forth by the consortium applying for the JSA, as well as their astute assessment of the block’s potential. The indispensable role of SKKMIGAS, in collaboration with the operator, in overseeing and managing the North Ganal block has been instrumental in achieving this monumental discovery.
The significance of this milestone cannot be overstated, and it stands as a testament to the collective dedication and expertise of all parties involved in this exploration journey.
As more JSAs are awarded, more wells are drilled, and discoveries unfold, Indonesia moves closer to fulfilling its energy needs, ensuring prosperity for its people. The Geng North-1 discovery stands as a testament to the resilience and collaborative efforts that drive success in the dynamic world of oil and gas exploration.
This article is written by Yusak Setiawan – Country Manager of Tately.
