Malaysian floater specialist Bumi Armada has finalised a production sharing contract with the Energy and Mineral Resources Ministry of Indonesia for the Akia offshore exploration block in the Tarakan Basin, North Kalimantan Province.
The company’s unit Armada Akia and its co-bidder, Pexco Tarakan, have signed up for an area of 8,394 sq km containing the Aster and Tulip oil and gas discoveries.
The Tulip discovery has an estimated recoverable resource of 860 bcf of gas and 60b boe of oil and condensate and Bumi said it plans are to acquire new 3D seismic to evaluate the potential for a fast-track development.
The water depth at the Tulip discovery is 800 m and Bumi Armada would provide and operate a floating production storage and offloading unit and a floating liquefied natural gas facility or gas pipeline for the development, the company said in a Bursa Malaysia filing.
Armada Akia is the operator with 51% participating interest in the Akia exploration block while Pexco Tarakan holds the remaining 49% stake. The consortium signing the deal is a related party arrangement. Objektif Bersatu, a subsidiary of Usaha Tegas, has a direct 34.61% interest in Bumi Armada. Tatparanandam Anantha Krishnan is a major shareholder of Bumi Armada, and also holds a 100% indirect interest in Pexco.
