Exploration success in the eastern part of Indonesia and its challenges in the future

Abstract

Abstract Challenges facing the explorationist in Eastern Indonesia are dominated by multiple and often highly different play types in a region of little geological constraint. In addition, high-risk and high-cost exploration programs result from having to operate in remote areas containing little or no infrastructure. In spite of the challenges a number of structures drilled in the region have successfully discovered hydrocarbons from both Tertiary and Pre-Tertiary reservoirs. This enormous area has had an extremely variable amount of exploration intensity and exploration history. In an effort to reverse the decline in hydrocarbon production, the Indonesian Government policy has been to increase the exploration activity in the eastern part of Indonesia. In order to encourage exploration within some of the least explored areas Pertamina has undertaken several speculative regional seismic surveys and geological studies. Hydrocarbon discoveries in Papua New Guinea and Northern Australia have contributed to our knowledge of Pre-Tertiary section and have resulted in increased exploration activiy in Eastern Indonesia. Production Sharing Contracts and the subsequent incentive packages have been designed to encourage oil companies to intensify their effort and this has resulted in some rewards. A number of discoveries have been made and new oil fields are being developed. Unfortunately there have been a number of exploration failures. Some discoveries were made that were not developed for economic reasons, while other exploration programs failed because of geological reasons. These successes and failures require careful analysis before initiating further exploration in the region. The main purpose of this paper is to discuss some reasons of success and failure in Eastern Indonesia and some of the problems facing the explorationist.