Lion Energy, partner of CITIC Resources in PSC Seram (Non-Bula) reports that the Oseil 23 development well in the Oseil Field has started production from early January 2022 and its production performance is being monitored. Oseil 23 is the first never-drilled well in the northwest of the Oseil-2 fault block. Spudded on 7 May 2021, this well targeted carbonates from the Manusela Formation. The well is estimated to be capable of producing around 500 bo/d.
Historically, the Seram (Non-Bula) PSC is on the mainland (onshore) of Seram Island. The Seram PSC was awarded to Gulf and Western Indonesia Inc (G&W) on November 1, 1969 to restore the function of the Bula oil field which had been damaged during World War II. PSC WK Seram Non Bull was first signed in 1999 by Kufpec (Ind) Ltd. On 11 July 2006, CITIC announced that it had signed a USD 97.4 million sale and purchase agreement to acquire a 51% operating stake in the Seram PSC Extension from operator Kufpec. In February 2018, CITIC agreed to sell a 10% participating interest to PT GHJ, an independent local company. Then, in Q2 2018, Kufpec released its ownership in the block to another local company, PT Petro Mandiri. On May 31, 2018, the PSC partners signed a new gross split contract to continue operations in the block for a new 20 year period. The signature bonus for new contracts is USD 1 million. CITIC and partners have committed to invest approximately USD 49 million for the first five years of the new contract.
Currently CItic is the operator with 41% participating interest. Meanwhile, other partners are PT Petro Indo Mandiri (30%), Gulf Petroleum Investment Company (16.5%), PT GHJ (10%) and Lion Energy (2.5%).
In field development, the Operator has completed the Oseil 29 well. The well is reported to have produced approximately 400 bo/d and 170 bw/d from the Manusela Formation. After the Oseil 29 was completed, the operator drilled the Oseil 23, except for operational constraints related to the 2019 coronavirus disease (COVID-19) situation. The two wells are part of the Plan of Further Development (POFD) which was approved by SKK Migas in 2015. The POFD consists of ten wells, eight of which have been completed to date. The drilling program was discontinued in 2016 due to low oil prices at the time and uncertainty in the upcoming PSC renewal in 2019. Oseil 29 and Oseil 23 were the seventh and eighth wells drilled under the POFD. The operator has the last two wells to be drilled in the same fault block (Oseil 2), drilling to be completed by 2022. During Q4 2021, the block produced an average of 1,445 bo/d
Expectations to Increase Revenue Sharing Funds and Participating Interest (PI) 10% for Regions
Until the third quarter of 2021, Citic Seram has carried out oil lifting of 299,775 barrels or has only reached 39.1% of the oil lifting target set by the government of 766.5 thousand barrels. It is hoped that by starting the production of Oseil 23, it can improve the performance of oil lifting so that later it can increase the Revenue Sharing Fund from the oil and gas sector Kab. Eastern Seram and Maluku Province.
Quoted from beritasatu.com on August 20, 2021, Citic Seram Energy Ltd (CSEL) has offered and collaborated with BUMD PT Maluku Energi Abadi (Perseroda) for Data Opening in the Context of Transferring 10% Participating Interest in the Non-Seram Oil and Gas Working Area. bullae. The signing of the Minutes of Opening the data was carried out by Citic Seram Energy Ltd (CSEL), PT Maluku Energi Abadi (Perseroda) and the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources. The signing was also witnessed by the Assistant for Civil and State Administration (Asdatun) of the Maluku High Prosecutor’s Office, Lulus Mustofa and the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources.
ADPMET continues to encourage the rapid realization of the transfer of 10% Participating Interest in the Non-Bula oil and gas working area between Citic Seram and the BUMD of Maluku Energi Abadi so that later the region will receive additional benefits and income through 10% PI. Through the transfer of knowledge and technology and business processes from the oil and gas industry, it is hoped that oil and gas BUMDs can become healthy and strong BUMDs so that they can develop businesses in helping easier access to energy for local people.