INDONESIA - Future Gas Prospects.

Indonesia has enjoyed one of the highest success rates in exploration drilling for gas, not only in the number of discoveries made but also in the volumes added per well drilled. New gas volumes have been added at an average of about 2 TCF per annum. It is reasonable to suppose that these levels could continue for some time to come since exploration in many of the petroliferous basins remains far from maturity. Deeper drilling in established areas has led to new discoveries.

However, the rate of oil discoveries has been low in recent years. There is not likely to be a major change for the better unless the government improves E&P incentives to foreign companies. Exploration in frontier areas, like Papua, is hindered by lack of infrastructure and mountainous, jungle-clad terrain. Several parts of the Indonesian archipelago, especially in Central Sumatra, are areas of high geothermal gradient. Thermal destruction of hydrocarbons may occur at shallow depths.

Nevertheless, there should be scope for investigating deeper objectives in many of the established basins. So far as is known, the main targets in most of Indonesia have been either structural or reefal plays, i.e. targets clearly defined by four-way closures.

There would appear to be potential for more subtle stratigraphic plays which have had low priority in the past. With the advent of 3D seismic it is to be expected that more arcane traps may be targeted. The types of deltaic sand bodies which form many of the reservoirs in Indonesian fields are likely to be fruitful targets for providing additional reserves that can be accessed with modern drilling technology.