Repsol and Petronas’ Andaman deepwater probe disappoints in Indonesia

Repsol’s (BME:REP) much-anticipated Rencong-1X wildcat exploration properly within the frontier deep-waters of Indonesia’s North Sumatra basin has failed to seek out industrial oil and gasoline reserves.

The probe, spudded within the Andaman III Block in July utilizing the West Capella drillship in waters 1,100 metres deep, has been declared a dry gap, Director Normal of Oil and Gasoline on the Ministry of Power and Mineral Assets, Tutuka Ariadji, advised Indonesia’s parliament earlier this week.

Petronas has a 51% stake within the block that’s operated by Spain’s Repsol.

Considerably, the block is adjoining to the Andaman II block, the place operator Harbour Power (LON:HBR) found gasoline and liquids earlier this yr, utilizing the identical drillship, at its play opening Timpan-1 exploration properly.

The area, which is basically undrilled, gives the potential for large gasoline discoveries. Harbour’s current preliminary success at Timpan-1 has revived curiosity within the space.

Harbour Power plans to drill three extra exploration wells in its block subsequent yr, whereas Mubadala Power can also be lining up some exploration wells within the Andaman area offshore Aceh.

The complete Andaman Sea space from Aceh to the Gulf of Martaban (Myanmar), which incorporates the North Sumatra basin within the south, has no recognized oil producing supply rocks. Solely gasoline accumulations, reminiscent of Arun and Yetagun, are recognized. Subsequently, deep-water gasoline accumulations are doable, however the presence of excellent reservoirs stay a serious danger.

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