IEC has initiated new 3D seismic exploratory operations at its Kruh Block, spanning 63,000 acres.
This development is expected to facilitate the drilling of new production wells at the block by the end of 2024.
Alongside this, IEC has secured essential environmental permits for its Citarum Block, which is located onshore on the Island of Java in Indonesia and potentially holds more than a billion barrels of oil equivalent.
IEC, as the Kruh Block operator, is undertaking a 29km² seismic programme that targets existing proved reservoirs and promising shallow oil/gas zones discovered in 2022.
The seismic data will identify additional locations of proved undeveloped reserves, aiding in prioritising future drilling sites. Drilling operations are set to recommence post-evaluation of the seismic data, with the first well planned for the fourth quarter of 2024.
IEC’s joint operation contract with Pertamina covering the Kruh Block has been extended by five years from May 2030 to September 2035.
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By GlobalData
Kruh Block spans around 63,000 acres and is situated on the Island of South Sumatra in Indonesia.
The amended joint operation agreement enhances IEC’s share of after-tax profits from the existing 15% to 35%, an increment of more than 100%. Additionally, with the contract’s extension for an additional five years, it is anticipated that IEC’s proved reserves at the Kruh Block will grow by more than 40%.
At the Citarum Block, IEC is preparing for seismic operations, which are anticipated to start late this year or early next year. Plans for drilling are set to commence next year.
Although IEC had to surrender 35% of the initial acreage in the Citarum block in compliance with governmental mandates, it still holds close to 97% of the initially identified prospective resources. The company now has the opportunity to drill across an area of roughly 650,000 acres within the block.
IEC president Frank Ingriselli said: “We are very excited about the commencement of new seismic operations on our Kruh Block enhanced by the significant improvements in our economics from the 2023 contract extension with the Indonesian Government. All of this bodes well for our company as we look to recommence drilling at Kruh Block in late 2024.
“We continue to believe that Kruh Block is a world-class asset and, in order to maximise future production capability, the seismic operations planned across the entire Kruh Block should positively leverage what we have learned from our previous discoveries, including our 2022 gas discovery, and determine the best locations to restart our continuous drilling campaign.”
Ingriselli added: “Additionally, we have now also moved forward with activities at our potential billion-barrel equivalent natural gas 650,000-acre Citarum Block, where the previous operator drilled several gas discoveries. In short, we have never been more excited about IEC’s potential, and we look forward to continuing our efforts as we seek to drive positive shareholder value.”
