Consolidation of its position in Norway and important discovery in Indonesia

abarrelfullabarrelfull wrote on 28 Jul 2011 11:43
Tags: gdf-suez indonesia norway upstream

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GDF SUEZ announced today two important milestones in the development of its portfolio of exploration & production assets. These operations are located for the one in a mature area in Norway and for the other in a promising region in Asia.

Thus, the Group acquired an additional 20% share in the offshore Njord field and in Noatun discovery in Norway, from ExxonMobil Exploration & Production Norway AS. GDF SUEZ E&P Norge AS therefore becomes the first shareholder in this licence with a 40% interest, alongside Statoil (20%, operator), E.ON Ruhrgas (30%), Faroe Petroleum (7.5%) and VNG (2.5%).

Meanwhile, GDF SUEZ, with its partner Eni Indonesia (operator of Muara Bakau PSC with a 55% share), announced a discovery in the North East of the Jangkrik gas field in the Muara Bakau licence, offshore Indonesia. This result follows the success of two exploration wells and one appraisal well drilled in 2009 and 2010 in the Jangkrik field.

Jean-Marie Dauger, Executive Vice President of GDF SUEZ, in charge of the Global Gas & LNG Business Line, explained: “These two operations highlight the GDF SUEZ E&P’s strategy and successful implementation : a balanced portfolio with a strong presence in mature areas, such as Njord in Norway, and with exploration in new areas such as in Indonesia.”

The Njord area in the Norwegian Sea is very active. The North-West Flank which is part of the Njord license is currently being drilled from Njord whilst the fast track development Hyme (ex Gygrid) recently approved by the Ministry of Petroleum and Energy will be tied back to and processed at the Njord facilities. The start of the Low Pressure Production project on the Njord field in 2013 will increase the recovery rate and extend the life of the field, in production since 1997. Entered in the licence late 2000, GDF SUEZ intends to speed up development of other discoveries in this area, thus expanding the life time of the Njord platform then used as a hub for the area. The transaction is subject to approval from the Norwegian Authorities.

In Indonesia, GDF SUEZ entered into the offshore exploration Muara Bakau PSC in September 2009 with a 45% stake. This licence is located in the Eastern part of the Kutei Basin, off the Mahakam Delta, largest river of eastern part of Borneo island (East Kalimantan). Results of this exploration well indicate more than 60 meters of net gas pay in excellent quality reservoir sands of Pliocene and Miocene ages. During the production test, the well produced high quality gas at a tubing constrained rate of 30.6 MMscfd(1). The gas produced will be routed to Bontang LNG plant.

Present in 16 countries, GDF SUEZ E&P built a balanced portfolio through targeted acquisitions and operated licences, to bring cash flow and additional resources to the Group. As at December 31st 2010, the E&P business unit holds 362 licences, 206 of which (57%) are operated. The reserves are 815 MBoe(2) and the total production is 51.2 Mboe (74% gas-26% oil).

(1) Million standard cubic feet per day
(2) Million barrels of oil equivalent

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