Indonesian Oil & Gas Book 2008

Kakap PSC

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Natuna Besar Island Until 2001, the block had been developed only
������ for oil production. In 1996, three PSCs (Block B,
Block A and Kakap) formed the "West Natuna
Group", with the purpose of jointly marketing
�������� gas from the West Natuna Area to Singapore.
In January 1999, Pertamina, Singapore's
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SembCorp Gas Pte Ltd and the West Natuna
Group entered into a definitive agreement, for
the sale and purchase of approximately 2.5
trillion cubic feet (TCF) of gas over 22 years
from specified fields in the PSCs operated by
the West Natuna Group. Kakap was expected
to contribute approximately 300 BCF to the
total volume.
Fact Sheet
Type of Contract : PSC The construction of the Kakap upstream
Location : Riau Islands (Offshore) facilities and the West Natuna Transportation
Area : 2,000 sq km System was completed in December 2000,
Operation Status : Production
Operator : Star Energy (Kakap) Ltd.
Contract Signing : March 22, 1975
March 22, 1998 (Amend)
April 23 , 2005 (Effective Extension)
End of Contract : April 23, 2028
Participants : Star Energy (31.25%);
Premier Oil (18.75%);
Medco Energi (16.0%);
Singapore Petroleum Company (15.0%);
Pertamina (10.0%);
Santos Limited (9.0%)

Overview
The Kakap PSC is located in the remote but highly petroliferous West
Natuna Sea, approximately 1,000 km north of Java and 250 km east of the
Malay Peninsula. The block was originally awarded to Phillips Petroleum
Company Indonesia and Tenneco Indonesia Inc in 1975.

The Kakap block comprises two separate areas: South Kakap, which
contains all of the producing fields and discoveries, and North Kakap,
which is relatively unexplored, but contains some exploration prospects
and leads.

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 Working Areas

approximately four months ahead of schedule and under

budget. The upstream facilities required for the project were
placed into service in early December 2000 and the 28-inch,
650-km West Natuna Transportation System (WNTS) was
commissioned at the end of 2000. Actual gas sales began in
January 2001, six months prior to the commencement of the
full sales contract on July 15, 2001.

The Kakap PSC co-owns of WNTS operated by ConocoPhillips.

The owners of WNTS are:
• Block B (43.1%), operated by ConocoPhillips;
• Block A (36.9%), operated by Premier Oil; and
• Kakap (20%), operated by Star Energy.

Production
Oil and gas are produced at ten fields, that is KF, KH, KG,
KRA, Jangkar, Nelayan, KG-5A, KRN, KR and KRA South. The
output is sent to four main production platforms: KF, KH, KG development of shallow gas reserves overlying the producing
and KRA. KG oilfield.

Of a total of 46 wells comprising 54 strings, 34 produces oil,
seven produces gas, two is used for gas injection and 11 are
shut-in.
In 2006, Kakap block produced 2,261,705 barrels of oil,
287,180 barrels of condensate and 33,088,628 MSCF of
gas.
All the oil and condensate are sent to Kakap Natuna FPSO for
processing and storage before being transferred to tankers
for export. Meanwhile, gas is processed at the KF platform
before being delivered through WNTS to Singapore.
Recent Development
To maintain Kakap's commitment to provide a reliable supply
of pipelined gas into Singapore, Star will soon commence
Drilling of the KG West-1 subsea development well is
expected to be completed in the third quarter of 2007.
Engineering works planned for 2007 include designing a 2.3
kilometer long flowline and well control umbilical to connect
KG West-1 to the KG Platform and installation of a 10 inch
diameter gas pipeline connecting KG platform to the KF
Platform 11 kilometers to the south. From KF the gas will
enter the export pipeline to Singapore. Gas production from
this project is slated to begin in April 2008.
In an effort to reduce the offshore construction costs, the
KG gas development will be combined with two other
construction projects, namely the installation of flowline
and subsea well control umbilical between the 2006 Lukah-
1X gas discovery and the KG Platform and reactivation of
the KR-1X oil well. Both of these projects will also add to
Kakap's production in early 2008.

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