Mobil Discovers Additional Hydrocarbons in Deepwater Offshore East Kalimantan, Indonesia.FAIRFAX, Va.--(BUSINESS WIRE)--July 15, 1998--Mobil Corp. announced Thursday that Mobil Makassar Inc., a subsidiary in Indonesia, has discovered additional oil and gas in the Greater Merah Besar area, offshore East Kalimantan East Kalimantan (Indonesian: Kalimantan Timur abbrv. Kaltim) is Indonesian province on the east of Borneo island. The resource-rich province has two major cities, Samarinda (the capital and a center for timber product) and Balikpapan (a petroleum center with oil in Indonesia.
Two recent exploration wells, Hitam Besar-2 and Hijau Besar-3, confirmed the presence of significant oil and natural gas potential in the deepwater area of the Mahakam Delta which is covered by the Makassar Strait Makassar Strait
Narrow passage of the west-central Pacific Ocean, Indonesia. Located between Borneo and Celebes (Sulawesi), it connects the Celebes Sea to the Java Sea. It is 500 mi (800 km) long and 80–230 mi (130–370 km) wide. Production Sharing Contract (PSC (Public Service Commission) Same as PUC. ).
The Hitam Besar-2 well, completed as an oil and gas discovery on May 6, 1998, was drilled in 1,973 feet of water to a depth of 9,565 feet and found 66 feet of net hydrocarbon pay. The Hijau Besar-3 well, which was completed as an oil and gas discovery in early July, 1998, was drilled in 2,250 feet of water to a total depth of 8,000 feet and found 34 feet of net gas pay.
Two deep sidetrack wells from the original hole found an additional 125 feet of net condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. rich gas pay and 16 feet of net oil pay in adjacent fault blocks. Analysis continues on a deeper zone.
These two wells follow the initial discovery well, Merah Besar-6, drilled in 1997. A second rig has been brought in which will continue to appraise appraise v. to professionally evaluate the value of property including real estate, jewelry, antique furniture, securities, or in certain cases the loss of value (or cost of replacement) due to damage. the Greater Merah Besar structure. Development plans for this area should be finalized See finalization. later this year with the potential for production by 2001.
Based on the latest drilling information, the estimated gross resource potential in the Greater Merah Besar area, which is partly on Unocal's East Kalimantan PSC, is up to 190 million barrels-of-oil equivalent. Gas from the project is expected to be processed at Pertamina's Bontang LNG LNG (liquefied natural gas): see under natural gas. facility.
"This drilling program has confirmed the existence of significant hydrocarbon resources in the deepwater area of the prolific Mahakam Delta, and advances in deepwater production technology make commercial development possible," said M.W. Scoggins, president, International Exploration and Production.
"We are very encouraged by our early exploration success offshore East Kalimantan and several additional prospects have been identified on the Makassar acreage, some potentially larger than Merah Besar. Our plans are to drill these prospects while appraising the Merah Besar field."
Working interest in the Makassar Strait PSC is 50 percent Mobil and 50 percent Unocal, the operator of the block. Mobil, additionally, has an agreement with Unocal for a 30 percent interest in the Rapak block which is located to the north of and adjacent to the Makassar Strait PSC.
Rapak represents additional prospective acreage in the same hydrocarbon bearing trend as the Makassar block and presents Mobil with further opportunities for growth.
Mobil affiliates, under contractor agreements with Pertamina, the Indonesian national oil company, have working interests in 11 blocks in Indonesia.
In 1998, Mobil celebrates 100 years doing business in Indonesia, 30 years as a Production Sharing Contractor, 20 years as a producer of Liquefied Natural Gas liquefied natural gas: see under natural gas.
Liquefied natural gas (LNG)
A product of natural gas which consists primarily of methane. Its properties are those of liquid methane, slightly modified by minor constituents. (from the giant Arun natural gas field in Aceh province, north Sumatra North Sumatra (Indonesian: Sumatera Utara) is a province of Indonesia. Its capital is Medan. Geography and population
The province of North Sumatra stretches across the island of Sumatra between the Indian Ocean and the Strait Malacca. ) and 10 years as a producer of Liquefied Petroleum Gas liquefied petroleum gas or LPG, mixture of gases, chiefly propane and butane, produced commercially from petroleum and stored under pressure to keep it in a liquid state. .
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Mike Kimmitt, 703/846-2387
Dave Dickson, 703/846-2378