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Inameta Journal_September_2009 _Vol_VIII Indonesian Oil and Gas Journal Vol. VIII / 2009 KSO OPERATION COOPERATION PT. PERTAMINA EP 2009 JOURNAL www.patranusa.com ISSN 1907 - 1493

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Page 1: Inameta VIII - September Email

Inameta Journal_September_2009 _Vol_VIII �

Indonesian Oil and Gas Journal

Vol. VIII / 2009

KSO OPERATION COOPERATION

PT. PERTAMINA EP 2009

Journal

www.patranusa.com

ISSN 1907 - 1493

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Inameta Journal2

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Inameta Journal_September_2009 _Vol_VIII �

Content

42. News from migasMIGAS ANNOUNCEMENTFOR THE TENDER OFDIRECT PROPOSALSECOND ROUND 2008

45. HobbyBPMIGAS CyCLING COMMUNITy (BCC)

06. Corporate CommunicationTHE MINISTER OF ENERGy AND MINERAL RESOURCES MR. PURNOMO yUSGIANTORO wERE DEDICATING PATRA NUSA DATA BUILDING

12. Expert PerspectiveDESIGNING COAL-BED METHANE SEISMIC ACQUISITION SURVEy PARAMETERS USING FINITE DIFFERENCE MODELING

16. Cover StoryKERJA SAMA OPERASI (KSO) OPERATION COOPERATION PT. PERTAMINA EP 2009

22. OpportunitiesBONE BASIN

16

06

36

34. Corporate Social ResponsibiltyPT MEDCO E&P INDONESIACOMMUNITy DEVELOPMENT PROGRAM “EMPOwERING LOCAL POTENTIAL”

36. profile interviewMR. CHANDRA DAUD TIRANDA

41. Calendar of Event

42

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Inameta Journal�

ForeWord

Bussines DirectorM. Zakie

Chief EditorEddy Arus Sentani

Wijisaksono

Contributing EditorErmen Rasyid

Arditya Nugraha

ContributorNurul Amri

Lexi WulandariEka RistandiZeth Charles

Marketing & Business Centre

Ermen RasyidGunawan Heru Swasana

FinanceJoko Priambodo

Suwandi

Data & InformationAgung Suryolaksana

Ferry WidjajaHeri GunawanYayan Mulyana

Publication LicenseISSN �907 - ��9�

For advertisements and requestsrelated to the Inameta Journal,please contact at anugraha@

patranusa.comor call +622� 78�6770 to 7�

PublisherPT. Patra Nusa Data

Head OfficeGraha Elnusa Building 5th Floor

Jl. TB. Simatupang Kav. �B JakartaSelatan �2560

Phone: +622� 78� 6770 to 7�Fax: +622� 78� 6775

Operational OfficeTaman Tekno Sektor XI

BSD, Tangerang, BantenPhone: +622� 7588 25�0

Fax: +622� 7588 25��

[email protected]

Pertamina was established as a merger of several upstream and down- stream PN PERMINA and PN PERTAMINA in �968. In �97�, a new law clari ed Pertamina’s roles as an upstream and downstream operator, as well as contractors’ regulator. A 200� law speci ed the deregulation

of the country’s oil and gas industry. Oil and Gas Law 22/200� regulates oil and natural gas activities, whereas upstream activities will be conducted and controlled through the cooperation contract which determines the role of Migas, BP Migas, and Pertamina. In line with the 200� law, Pertamina is a state-owned company undertaking capital and risk.

The enactment of Oil and Gas Law 22/200� and Government Regulation ��/200� has changed the legal status of Pertamina from a wholly state-owned company into a limited liability company committed to deliver quali ed products and services to the stakeholders, as well as its contribution to the nation’s wealth, by implementing an integrated system from upstream to downstream. BP Migas was then established in 200�.

Since September �st 200�, Pertamina was legally transformed into PT Pertamina (Persero), a pure business entity which is more pro toriented. On September ��th 2005, PT Pertamina EP was established. Four days later, it signed a cooperation contract allowing it to be more exible in farming out its areas to other companies and carry out cooperation with other parties, with BP Migas for all existing work area out- side Cepu and Randugunting blocks.

Pertamina EP still has many exploration and production business potentials for oil (resources �.7 billion barrels of oil) and gas (resources 29 trillion ft�) open for joint cooperation for investors. A new model of business partnership is Operation Cooperation or Kerja Sama Operasi (KSO) which has o ered by Pertamina EP. It has an excellent enthusiasm from investors who had submit the bidding proposal to Pertamina EP on KSO Batch � 2006.

In August 20th 2009, Pertamina EP has announced the KSO Batch 2 bidding of 7 blocks which consist of 5 block exploration and 2 block production. The announcement has opened by The President Director of PT. Pertamina EP, Mr. Salis S. Aprilian who said in press conference that KSO Batch 2 is open from August 2�th – September �8th, 2009. It covers the info memo access, administrative documents submission, and data review.

Data Review and Data Access have prepared by Patra Nusa Data as Oil and Gas Data Provider in Indonesia. Patra Nusa Data also provides info memo access and Data Room for investors and oil companies convenience in its Head o ce on Graha Elnusa 5th oor Jl. Tb Simatupang kav. �B Jakarta Selatan. Meanwhile, on the August 26th 2009, the operational o ce of Patra Nusa Data on Taman Tekno BSD Sector XI Block G2/� Tangerang has dedicated by The Minister of Energy and Mineral Resources, Purnomo Yusgiantoro.

The Minister of Energy and Mineral Resources, Mr. Purnomo Yusgiantoro was dreaming of this manifestation of National Data Center which covers all data of Energy and Mineral Resources sector. It has been realized by Data and Information Center of Energy and Mineral Resources (Pusdatin ESDM) which in cooperation with PT. Patra Nusa Data (PND) to perform oil and gas data processing and data management. Finally, the Head of Pusdatin ESDM, Mrs. Farida Zed expected that the good availability of oil and gas data will trigger the increase of investment in oil and gas sector.

Eddy Arus SentaniChief Editor

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Inameta Journal_September_2009 _Vol_VIII 5

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CommunicationCorporate

The Minister of Energy and Mineral Resources Mr. Purnomo Yusgiantoro were dedicating Patra Nusa Data Building

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Inameta Journal_September_2009 _Vol_VIII 7

As launched by Energy and Mineral Resources Department on Wednesday August 26th 2009, the Cooperation covers the activity of data acquisition and finding both of domestic or overseas, management, data quality and storing enhancement. Stored data covers open and close data.

The Minister of Energy and Mineral Resources, Mr. Purnomo Yusgiantoro was dreaming of this manifestation of National Data Center. He said that he have been working in this Department for �0 years, and he was longing for the manifestation of National Data Centre which covers all data of Energy and Mineral Resources sector, after dedicating Patra Nusa Data Building in Tangerang, Banten Province.

It is difficult to manifest National Data Center. Furthermore, according to the Minister, to manifest his dream, at the moment, minimum each unit owns data center which is connected to one data center (integrated database).

Data management with good management can increase the good values of data and information so that it will also raise the investor trust to invest. The Head of Data and Information Center of Energy and Mineral Resources, Mrs. Farida Zed said that the good availability of oil and gas

Data and Information Center of Energy and Mineral Resources (Pusdatin ESDM) is in cooperation with PT. Patra Nusa Data (PND) to perform oil and gas data processing to stimulate the efficiency, effectiveness, transparency and accountability implementation of oil and gas sector.

data will trigger the increase of investment in oil and gas sector.

She added that the future data management planning will be increased as what the Minister of Energy and Mineral Resources has wished for, which is the manifestation of National Data Center which covers all data and information of Energy and Mineral Resources sector.

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Inameta Journal8

to 60 children to have circumcision. Not only they got circumcised freely, the circumcised boys also got sarong, Muslim clothes which called “koko”, and peci as a form of affection towards people surround. This year was very special since there were series of events held by PT Patra Nusa Data that could help people’s warfare.

CommunicationCorporate

This year, PT Patra Nusa Data held Mass Circumcision on school holiday. The mass circumcision,

which gave priority on misfortune children around the office environment, was a series of social service and form of concern in our new office located in Taman Tekno BSD Sector IX Block G2/� Tangerang �5���.

This event was one of the series of Social Responcibility events in PT Patra Nusa Data Company Program for the establishment of our new office which started to operate since January 2009. The circumcision was performed by polyclinic doctor. The mass circumcision was proposed to help the unfortunate people who live around the office, especially children who come from Serpong village.

This event was at first proposed by the employees of PT. Patra Nusa Data who live in Serpong. After it was granted by the committee, the mass circumcision could be held on Patra Nusa Data Office Taman Tekno BSD Serpong,Tangerang and attended by children who were in holiday. We have conveyed through each RT that children who wanted to attend this event might come to PT. Patra Nusa Data. This event was a routine event held by PT Patra Nusa Data annually. This year, we had the opportunity to give a chance

The existence of PT. Patra Nusa touches people who live surround as it holds series of events which could assist them. Besides holding mass circumcision, PT Patra Nusa Data also supported the human resources quality improvement, preacher, etc. This social event held by PT. Patra Nusa Data

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is a realization of company’s concern for the society because one drop of blood means a lot for them. PT Patra Nusa hopes that this mass circumcision will leave a good impression in the children’s heart who attended this event. It will enlighten the burden of the poor in the company environments.

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Inameta Journal�0

NEW DATA COLLECTION

Patra Nusa Data as the part of Pusdatin or National Data Centre manages and promotes petroleum investment opportunities by compiling and value adding available petroleum data and information. Patra Nusa Data has a responsible to collect the relinquishment and termination data all over Indonesia. It also covers the New Data Collection which are:

�. Asahan by Asia Petroleum Development, which consist of 2� section, 2�� paper of well log, 97 paper Well Report and 2 map.

2. Tanjung Jabung by Petrochina, which consist of 29 post stack, �00 section, �9 well log, ��9 well report, �62 technical report, 2�8 map, �80 field tape and �00 supporting documents.

�. South East Sumatra, by CNOOC, which consist of �79 well report, 575 well log, � map, �97 core, �688 field tape and �8� supporting document

�. Merangin I5. North Bali � by Santos which

consist of 8 post stack, 5 seismic section, �7 paper well log, �2 well report, 6 technical report, � map, �2 core, more than 250 field tape, 9 supporting document.

6. West Kampar by Chevron, � post stack, � navigation, ��9 paper of well log, 2 map, �8 supporting document.

7. Pangkah by Hess, �� Post stack, ��5 section, �� cd navigation, ��9 well log, ��9 well report, � paper map, �9 core, �70 field tape.

8. Madura Island by Job Medco, �8 post stack, � navigation, 262 seismic section, 885 well log, �9� well report, 60 field tape and 77 supporting document.

9. Sakakemang by Job Conoco, which consist of �9 digital post stack, �82 seismic section, 25 navigation, �96 well log, �2 well report, 22 map, ��5 technical report, 26� core, 285 field tape and 50 supporting documents.

Do you need a new seismic data on water depth 0m – 600m?

• The map of tertiary sedimentary basins in Indonesia with regard to hydrocarbons is shown below. Indonesia has high potential for oil and gas deposits, so far, geological and geophysical assessment has identified some 60 tertiary sedimentary basins spread throughout the country, of which approximately 70 percent are located offshore, and half of it are in the shallow water producing basin is illustrated as red one, the blue one has already drilled and proven discovery but not producing yet, the green one has already drilled but no discovery yet. The yellow one known as frontier basin and the black line one is shore line has a water depth ranging from 0-600 meter.

The philosophy of oil and gas management is that, “every barrel of oil produced must at least be equal to the discovery of new oil reserves”. In other words, if the exploration activity in Indonesia is not proportional to the discovery of new reserves, the ratio of reserves to production (R/P) will be low, so that the remaining quantity of oil reserves in Indonesia will be severely depleted in the following few years. In order to overcome such problem, it is necessary to make a breakthrough, among other things by conducting exploration in transitional zone which have not been explored properly. Transitional zone and Shallow water is an area located between land and sea or a coastal area having a sea depth of less than

600 m. Results of Geological and Geophysical study (G & G) indicate that transitional zone in a sediment basin located at the “back-arc basin” having potential opportunity to find “giant fields”. Prospects for oil and gas reserves in this zone have not been explored completely, due to the limited seismic exploration technology for the purpose of obtaining potential data on its oil and gas. Accordingly, it is necessary to promote innovation in the area of seismology. The innovation proposed is a new technological breakthrough in exposing the existence of and calculating the quantity of potential oil and gas reserves in the aforementioned zone.

Indonesia is an archipelago, seismic surveys conducted yet are still dominated by land and deep sea survey activity. Seismic surveys in coastal areas and shallow sea or transitional zone have not been carried out optimally as a consequence of the limited technology and equipment. Importing equipment from overseas will require very high equipment mobilization costs leading to high exploration costs. There is increasingly need for this equipment in Indonesia since its geographical position consisting of archipelago with shallow sea and straits which may serve as potential reservoir for exploration. Consequently, activities in this zone cannot be conducted maximally so that data on potential Hydro Carbonate cannot be identified in an accurate manner.

The geological condition of the Indonesian sedimentary basin particularly those located in the back-arc basin may potentially produce oil and gas for exploration. Seismic method is a major facility to project an image of oil fields existing in the transitional zone including straits or Gulf which also constitute the areas where oil and gas reserves are accumulated.

The seismic survey conducted by PT Elnusa Tbk., in transitional zone to Shallow water in Indonesia will enable the exploration work in such zone to be carried out with lower mobilization costs compared to importing equipment from overseas.

Our services are include:

Please contact us for detail information:PT Elnusa Tbk., Geoscience Services Division

Graha Elnusa Building 13th Floor. Jl. TB Simatupang Kav. 1BJakarta 12560 Phone: +62 21 7883 0850 Fax: +62 21 7883 1072

MARINE SEISMIC DATA

HighlightLibrary

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Inameta Journal_September_2009 _Vol_VIII ��

www.jaspatama.co.id

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PerspectiveExpert

Previous seismic work related to coal has examined the reflectivity and resolvability of thin coal beds in the relatively shallow subsurface. Coal typically shows strong contrasts in seismic velocity and density with respect to adjacent strata. Gochioco (�99�) noted that although coal seams are extremely thin relative to seismic wavelength, their large acoustic impedance contrast with surrounding rocks results in distinct reflections, and the limit of resolution of coal beds may be closer to λ/8 rather than λ/�. Lawton and Lyatsky (�99�) examined coal reflectivity based on density contrast, demonstrating that density logs alone may be used to model the seismic response of coal beds, although both velocity and density logs are used in this study.

In order to assess the CBM responses in the seismic section, the modeling study requires geological and geophysical data which provides its basis. The objective of the study is to define the proper survey parameters to achieve the best result within the coal target. Another value added by doing this study is that we can optimally design a processing flow to achieve the best result delivered by seismic data processing.

FINITE DIFFERENCE MODELINgAcoustic wave modeling is an

important tool to understand the behavior of acoustic wave in a medium. This can be achieved by using a finite difference (FD) scheme to time step the wavefield and create snapshots of the wavefield, shot records, as well as exploding reflector models. FD can be implemented using second order and fourth order approximation to the scalar wave equation. Additionally, absorbing boundary can also be implemented to reduce the edge effect artifacts. For 2-D scalar wave equation, we

DESIgNINg COAL-BED METHANE SEISMIC ACQUISITION SURVEY PARAMETERS USINg FINITE DIFFERENCE MODELINg

PROCEEDINGS, INDONESIAN PETROLEUM ASSOCIATIONThirty-Third Annual Convention & Exhibition, May 2009

ABDUL HARIS*

BEFRIKO MURDIANTO*

ADRIANSyAH**

UNIVERSITy OF INDONESIA *

PT. PERTAMINA (PERSERO) **

ABSTRACT

Prior to commencing high-cost seismic acquisition, proper design of optimum parameters to achieve optimal results within the geophysical, operational and budgetary constraints is crucial and this is no less so than in the early stages

of Indonesia’s coal-bed methane (CBM) development. The designed parameters, which are deduced from synthetic modeling of seismic response of an appropriate subsurface model, will be used as references in the acquisition The seismic response is simulated using acoustic finite difference scheme and various responses of different recording parameters are then analyzed. The advantage of using finite difference over other modeling algorithms is its ability to model any acquisition setup from surface reflection seismic to borehole seismic. Furthermore, the response produces all physically possible wave types, providing a more intuitive than, for example, ray tracing which suffers in complex media due to its reliance on Fermat first arrival.

The unique properties of the CBM reservoir, which is characterized by thin coal beds, require high-resolution seismic data in order to be able to map its subsurface distribution. This study demonstrates how different choices of acquisition parameters can affect the simulated seismic response. The results are then analyzed and used to justify or revised the proposed acquisition parameters.

INTRODUCTIONWith energy consumption in Indonesia

is continually increasing, energy reliance is primarily on progressively decreasing conventional oil and gas reserves with a small contribution from coal and water. This situation has prompted the need for the diversification of energy sources, and coal-bed methane (CBM) is one such alternative.

Potential reserves of CBM in Indonesia are estimated to be approximately ��7 TCF spread throughout eleven coal basins across Indonesia in South Sumatra (�20 TCF), Central Sumatra (50 TCF), Barito (75 TCF), Kutei (50 TCF), Berau (�0 TCF), and Tarakan 20 TCF (Scott H. Stevens, 200�). With CBM production in Indonesia still in its infancy, its potential has not yet been widely commercialized. The abundance of these massive and low-rank coal deposits of Indonesia have yet to be proposed for CBM exploration and development. The

prevailing view is that coal reservoirs in Indonesia are insufficiently mature to have developed high gas content and favorable permeability required for commercial development (Stevens, 200�).

Despite the geological differences of Indonesian coal basins with those of the five U.S. coal basins where CBM production has been successfully established, investigations to date of Indonesian coal basins based on well and seismic data indicate that the CBM potential in Indonesia may be considerable.

Seismic exploration techniques can be successfully applied to the development of CBM reservoirs, providing a potentially new and important energy source, specifically in Kutai, East Kalimantan. A review of existing and newly developed technologies demonstrates that seismic methods are an invaluable tool in CBM prospecting and development (Richardson, 200�).

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Inameta Journal_September_2009 _Vol_VIII ��

can consider the scalar wave equation in two dimensions (Margrave, 200�).

where 2 is the Laplacian operator, and is given by

A second order approximation for the Laplacian operator can be implemented as (Margrave, 200�)

while the fourth order approximation is (Margrave, 200�).

The use of these equations in time stepping a wavefield is known to be unstable, which can result in increased amplitudes of the wavefield without bound as it is stepped through time. Lines et al (�999) demontrated that this problem can be mitigated by applying:

for second order Laplacian, and

for fourth order Laplacian.

AVO RESPONSE In order to optimally design the seismic

survey with regards to offset length and, by extension, the amount of equipment required (cable length, etc), it is important to consider the seismic response as function of offset or incidence angle, which is commonly called Amplitude Versus Offset (AVO). Reflection and transmission coefficients generally are complicated nonlinear functions of medium parameters. Thus, exact expressions of the coefficients usually do not provide useful analytic insight for AVO. Therefore, simplified approximations for the reflection and transmission coefficients are of great importance in practical AVO analysis (Bortfeld, �96�; Aki and Richards, �980; Shuey, �985).

The most general approximations for P-wave reflection coefficient for isotropic media started with the work of Knott (�899) and Zoeppritz (�9�9), which described the relationship between incident and reflection/transmission amplitudes for plane waves at a welded elastic interface

(Figure �). The boundary conditions for these equations vary depending upon the elastic media on either side of the welded elastic interface. These boundary

conditions for a solid-solid interface include continuity of tangential and normal displacement, as well as continuity of normal and tangential stress. The equations are fully described in matrix form by Aki and Richards (�980).

where APR, ASR, APT, and AST are the P-wave reflection coefficient, S-wave reflection coefficient, P-wave transmission coefficient, and S-wave transmission coefficient, and v, w, and ρ are the P-wave velocity, S-wave velocity, and density, respectively. For normal incidence condition (θ=0), reflection and transmission coefficient in equation (7) becomes

SURVEY PARAMETER DESIgN The response of numerical modeling

using FD was evaluated during simulation of the seismic response of a CBM field in the Kutai basin. Using compressional sonic, and density well logs through the coal zone, the seismic responses were generated as a tool in deciding the optimum parameters to be used in the seismic data acquisition. Modeling was then performed on these logs data outlined in Ridlatama (2007) (Figure 2). There are �0 coal seams identified, however, we only used � coal seams for

the modeling, which are labeled coal seam A, B and C.

In order to optimally design the parameter survey used for CBM imaging, which is located at shallow target (550 meter below surface) and the thickness less than 7 meter, the following initial parameters are used: shot interval is �8.75 meter, group interval is �2.5 meter, CDP fold is 80, number of channels is 2�0 and the cable length is �500m

The wave penetration to reach the target zone is considered by locating the source below the weathering zone. Ideally, the refraction work to determine the effective of buried depth should be performed. In this study, the buried depth is determined based on the signal quality of different buried depth. In the initial step, the dynamite sources with � kg charge, which result in the frequency content of about 25 Hz, are buried in 5 meter below surface by assuming no near surface heterogeneity.

Figure 1 - Reflection and transmission coefficients at a boundary.

Figure 2 - Kutai Basin estimated resources (Ridlatama, 2007).

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Inameta Journal��

Figure � shows velocity and density model used in the modeling and Figure � shows the simulated shot gathers with normal moveout (nmo) correction and converted to depth. It can be observed that coal C is resolvable, but coal A and B cannot be resolved possibly due to tuning effect (Gochioco, �99�). Further investigation suggests that a peak frequency of at least �0 Hz is required to resolve coal A and B (Figure 5).

In order to determine the far offset length and ultimately the cable length, to be used in the data acquisition, initial analysis of the AVO response of the subsurface model using Zoeppritz equation was required. CREWES online Zoeppritz Explorer was used for this purpose, which is available through their web site http://www.crewes.org, in order to analyze the necessary response (Figure 6). From this theoretical response, it suggested that AVO anomalies may be observed at angle of incidence greater than 50 degrees.

It now remained to be seen whether the same response could be observed on

Figure 3 - Simplified velocity (top) and density (bottom) model used in the modeling. Coal A, B and C is

annotated.

the simulated pre-stack data. Figure 7 is a common depth-point (CDP) gather from our subsurface model with 80 receivers and receiver interval of �2.5 meters, corresponding to a spread length of one kilometer exactly. From the measured AVO response on the target level, we can see that no evidence of AVO anomaly can be observed on the simulated response since the furthest offset corresponds to only about �0 to �0 degree angle of incidence. This is confirmed by running another simulation using a spread length of three kilometer or 2�0 receivers. The simulated response for a three kilometer spread length is shown in Figure 8 where it can be seen that the simulation gives the response predicted.

The next step of the study required the examination of the effects of shallow heterogeneities common in the weathering layers on the simulated response and to do that, the velocity and density model needed to be modified accordingly. Figure 9 shows the velocity and density model as in Figure �, but with shallow heterogeneities of �0 meter thickness.

Figure 4 - Simulated shot gathers with nmo

correction and converted to depth using a peak

frequency of 25 Hz. Coal A and B are interfering with

other reflections causing uncertainty in resolving

both layers. Coal C is well resolved and can be

identified easily.

Figure 5 - Simulated shot gathers with nmo

correction and converted to depth using a peak

frequency of 40 Hz. Coal A and B are now starting

to separate each other and can be individually

identified.

Figure 6 - Theoretical AVO response based on

Zoeppritz equation for subsurface model in Figure 3.

Figure 7 - Simulated CDP gather with cable

length of 1 km. No AVO anomaly is observed

as this only corresponds to about 30-40

degree angle of incidence.

Figure 8 - Simulated CDP gather with cable

length of 3 km. AVO anomaly is now observed

beyond 50 degree angle of incidence.

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Inameta Journal_September_2009 _Vol_VIII �5

Figure 9 shows the velocity and density model as in Figure �, but with shallow heterogeneities of �0 meter thickness. Figure �0 depicts the corresponding CDP gather when the source is located at five meters below surface. We can see that the AVO response suffers from near-surface irregularities and it can affect our AVO analysis, especially when the target is shallow. To overcome this problem, the required depth was calculated based on Drijkoningen (200�) suggestion that the optimum depth for a dynamite source should be a quarter wavelength of the dominant frequency below the weathered layer. Figure �� shows the same CDP gather as in Figure �0 but this time the source is located �6.25 meters below the surface. This demonstrates that, by putting the source below the weathering can help to attenuate the perturbation related to the near-surface problem. However, the problem is not eliminated entirely and needs to be considered in further processing.

CONCLUSIONFrom these results, it could be concluded that,

although coal seams are extremely thin relative to seismic wavelength, their seismic response can be identified. The selection of parameter design for CBM imaging shows that a peak frequency of at least �0 Hz is required to resolve the coal seam. In addition, the placement of source below the weathering is also essential in attenuating perturbation in the AVO response, although the problem still persists and needs to be addressed in the data processing.

According to the calculated response using Zoeppritz’s equation, anomalous AVO behavior can be observed beyond 50 degree incidence angle. Far offset affects the AVO response, as seen in the one kilometer spread length result in AVO response to the �0 to �0 degree angle of incidence, hence making it unsuitable for AVO analysis. The longer (�500 meter) far offset allows for a full AVO response of up to 70 to 80 degree angle of incidence and clearly shows any AVO anomalies.

Despite this, the use of finite difference modeling greatly assists in the numerous factors that need to be considered when designing seismic acquisition parameters in general and especially when attempting to image thin, shallow CBM reservoirs.

ACKNOWLEDgMENTThe authors gratefully acknowledge the assistance of

Ridlatama Group for data facilities.

REFERENCES

Figure 11 - Simulated CDP gather when the

source is below the weathering layer. It can

be seen that putting the source below the

weathering helps removing the perturbation,

but the problem persists and needs to be

addressed in further processing.

Figure 9 - Simplified velocity (top) and density (bottom) model with shallow heterogeneities.

Coal A, B and C is annotated.

Figure 10 - Simulated CDP gather when the

source is within the weathering layer. It can be

seen that this causes significant perturbation

in the AVO behavior.

- Aki, K. and Richards, P. G., �980, Quantitative Seismology: Theory and methods, W. N. Freeman & Co., San Fransisco.

- Bortfeld, R., �96�, Approximation to the reflection coefficients of plane longitudinal and transverse waves, Geophys. Prospecting, 9, �85 – 502.

- Clayton, R. and Engquist, B., �977, Absorbing boundary conditions for acoustic and elastic wave equations, Bull.

Seis. Soc. Am., 67, �529 – �5�0- CREWES Zoeppritz Explorer 2.2,

available at http://www.crewes.org.

- Drijkoningen, G.G., 200�, Seismic Data Acquisition, TA �600, Section Applied Geophysics & Petrophysics, Delft University of Technology

- Gochioco, L.M., �99�, Tuning effect and interference reflections from thin beds and coal seams: Geophysics, 56,

�288-�295. - Lawton, D.C., and Lyatsky, H.V.,

�99�, Density-based reflectivity in seismic exploration for coal in Alberta, Canada: Geophysics, 56, ��9-���.

- Margrave, G. F., 200�, Numerical Methods of Exploration Seismology with algorithms in MATLAB, Department of Geology and Geophysics, University of Calgary.

- Stevens, S. H. 200�, Coalbed

methane in Indonesia: an overlooked resource, AAPG international Conference, 2000, Department of Geology and Geophysics and CREWES, University of Calgary

- Richardson, S. E. Lawton, D. C., and Margrave, G. F., 200�, Seismic applications in coalbed methane exploration and development.

- Ridlatama Group 2007, CBM Potential in East Kutai.

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The Government of Indonesia merged PN PERMINA and PN PERTAMINA to become PN PERTAMINA (Perusahaan Pertambangan Minyak Dan gas Bumi Negara) on August �968, the state-owned oil and gascompany.

According to Regulation state company that has responsible not only to manage oil and gas exploration and production in Indonesia, but also fuel and gas distribution for the nation.

The changes in Indonesia and globally, made the Government of Indonesia has to reviewed its policy on oil and gas regulation. As the result, in September �7, 200�, stated Regulation of Oil and Gas Law No 22 in year 200� was enacted for nation’s oil and gas regulation. This new law has a major impact for oil and gas industries in Indonesia, including PERTAMINA. By the enactment of that law, PERTAMINA has an equal position as the other oil and gas contractors or companies in Indonesia. As the consequences of natonal state Regulation of Law Migas No 22 in year 200�, PERTAMINA has to be transformed

KERJA SAMA OPERASI (KSO)

OPERATION COOPERATION PERTAMINA EP 2009

PT. Pertamina EP has offered working acreage partnership in Kerja Sama Operasi (KSO) or Operation Cooperation scheme in August 20th, 2009.

into PT PERTAMINA (PERSERO) that legally established in September �7, 200� by state Policy PP No ��/200�.

PERTAMINA Upstream Directorat formed PT PERTAMINA EP as a subsidiary company in particular for hydrocarbon exploration and production on September ��th , 2005 : As the consequences of the enactments of LAW 22 in year 200� and States Policy (Peraturan Pemerintah) PP No �5 in year 200�. PT PERTAMINA EP has signed a Cooperation Contract Agreement or Konrak Kerja sama (KKS) with BPMIGAS, the National oil and gas executive regulatory agency, for PERTAMINA’s working acreage, not include Cepu and Randugunting Blocks.

It covers the exploration and production of oil, gas, and geothermal energy sources, performed through Pertamina’s own operation and joint operation arrangements. To maintain production, the aim of exploration activities is to discover new oil and gas reserves to replace hydrocarbons that already have

been produced. The business partnership is one

of Pertamina EP strategies to enhance production which accelerate exploration intensively.The previous partnership forms are JOB-EOR (Joint Operating Body for Enhanced Oil Recovery), JOB-PSC (Joint Operating Body for Production Sharing Contract), TAC (Technical Assistance Contract), IP (Indonesian Participation), PPI (Pertamina Participating Interest) and project loan.

PT. PERTAMINA EP as subsidiary of PT. PERTAMINA PERSERO has more responsibility to increase the national contribution by speeding up and devoting its effort to find and to lift up more oil and gas. As this responsibility, PERTAMINA has

invited investor for join cooperation. The previous partnership forms are JOB-EOR (Joint Operating Body for Enhanced Oil Recovery), JOB-PSC (Joint Operating

The registration of participant of the Launching of Operation Cooperation Pertamina EP

Above: President Director of PT. Pertamina Persero, Mrs. Karen Agustiawan Below: Presiden Director of PT. Pertamina EP, Mr. Salis S. Aprilian

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Body for Production Sharing Contract), TAC (Technical Assistance Contract), IP (Indonesian Participation), PPI (Pertamina Participating Interest) and project loan. The business partnership is one of Pertamina EP strategies to enhance production which accelerate exploration intensively.

A new model of PERTAMINA partnership is Operation Cooperation/Kerja Sama Operasi (KSO) scheme. PERTAMINA EP has offered working acreage partnership of 5 exploration blocks and 2 production blocks. The Launching of Operation Cooperation (KSO) Pertamina EP was opened by Presiden Director of Pertamina EP Mr. Salis S Aprilian.

In his speech and opening, Mr. Salis S Aprilian explains that Operation Cooperation Batch 2 is part of the effort of Pertamina EP to enhance the production in its contract areas also as transformation

done in Pertamina EP. Pertamina EP as the subsidiary of

Pertamina Persero has been given the liability to manage the old fields. In transformation, Pertamina EP continues its predecessor to build partnership with other companies to develop all assests of Pertamina EP. Pertamina EP has done the business new model portfolio and approached the new technology or new model and reinvest potential fields which can be raised.

Pertamina EP has marked its production report as ��2 thousand bopd and has exceeded its target, which is �25 thousand bopd Part. Part of its success is because the partnership made with other companies which was earlier in the form of Technical Assistant Contract (TAC), and now has changed into Operation Cooperation (KSO).

Pertamina EP wished to make partnership with holding the values that trigger the work performance of Pertamina EP which is � S ( Sincere, has no other interest except company’s or country’s interest; Strong, has power and strength; and Sensible, try to be sensitive).

Pertamina EP bids 5 exploration areas and 2 production areas. Operation Cooperation Batch 2 is different with its former, Operation Cooperation Batch � since Operation Cooperation Batch 2 makes clustering for better economy condition, for example there are some clusters for exploration area in North Rantau Deep.

Referring to the press conference of Pertamina EP launched in Four Season Hotel Jakarta, Pertamina confirmed that 5 Exploration-Production blocks of Pertamina

EP being bid are: North Rantau Deep, South Rantau Deep (North Sumatera), Pemalang (Central Java), South Tuban (East Java) and South Klamono (Papua). Furthermore, the 2 Production KSO fields being bid are: Tangai-Sukananti and Loyak-Talanggula, both are located in South Sumatera.

The Chairman of Operation Cooperation (KSO), Mr. Wahyudi Satoto explains that Operation Cooperation Batch 2 has an arrangement which is similar in general, yet there are some revisions in stated clauses. The basic principle of Operation Cooperation refers to the basic terms regulated in Article � KKS Pertamina EP in which Pertamina EP may

(left to right): Chairman of Operation CooperationPertamina EP, Mr. wahyudi Satoto, PresidentDirector of Pertamina Persero, Mrs. Karen Agustiawan, Director of Patra Nusa Data, Mr. M.Zakie.

The Poster Session in the Launching of Operation Cooperation, Pertamina EP

The participants who opened the database using PND Data Corner

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cooperate with partners for operational acceleration in the existing working areas, there shall not be transfer of interest, so this cooperation is on operational level. KKS in overall in EP Working Area and all operatorship matters shall be hold by Pertamina EP in relation with BP Migas.

The General Basic Pattern stated that Pertamina EP is responsible for operational management inside the operational performance. Pertamina EP shall supervise the operational events done by partners. In the operational, the risk and operational cost shall be borne by partners, and partners have the right to get reimbursement from the production cost.

In the Launching of KSO Batch 2, the President Director of PT. Pertamina Persero, Mrs. Karen Agustiawan gave a closing speech. She stated that the launching of KSO Batch 2 was Pertamina’s effort to build new “Medcos” or “EMPs”. If Pertamina is ready to open the opportunity for new partners of national oil and gas industry, then Pertamina EP would also be helped since it wants to accelarate the maturation process of the nonfocus fields. Therefore, this is considered as a good new raw model business for both, which will give benefit for both Pertamina EP and the new KSO holder candidate who has the same purpose of enhancing national products.

Pertamina EP itself has optimistically targeted to be the largest oil producer in Indonesia in 20��. Hence, Mrs. Karen hopes that whoever gets KSO can then cooperate with Pertamina EP to enhance the production. At the moment, the production of Pertamina EP has reached ��2 bopd, in which such production only comes from Pertamina EP business unit. KSO Batch � and TAC owned by our partners haven’t shown a production enhancement decided by Pertamina EP.

Mrs. Karen wished that in 20�0 the KSO Batch � holder can deliver what had been promised by Pertamina EP in production. Production enhancement shall not be born to Pertamina EP and Pertamina EP want the partners could contribute enhancing the production through consolidated become total production of Pertamina EP. She hope that there will be a lot of companies take part in this KSO Batch 2.

Manager of Public Relations of

Pertamina EP, Mr. M. Harun said in press conference that KSO Bidding Batch 2 is open from August 2�th – September �8th, 2009 which covers the info memo access, administrative documents submission, and data review. Data access shall be opened from August 2�th – October 2nd, 2009; and bidding documents submission shall start from November 2nd – 6th, 2009.

According to Harun, KSO Batch 2 is executed to optimize the marginal fields utilization in order to contribute in increasing the reserves and production of Pertamina EP. Pertamina EP could focus on the efforts to increase the production

on major support fields such as Limau, Tambun, Sukowati and other fields which show a significant increase of production.

KSO Exploration – Production shall be valid for the maximum of 20 years and partners must submit the first year Work Planning & Budget (WP&B) at the latest of � month after the effective date and must perform definite commitment during the first three years.

Pertamina EP reserves the right to terminate the whole agreement if definite commitment cannot be performed in the end of the first, second, and third year. Pertamina EP also reserves the right to terminate the contract of agreement if the approval of Plan of Development (POD) given is not performed for the maximum time of �2 months. The agreement shall automatically terminate if in the end of the third year or the extension year(s) (if any) the economical reserve is not found. However, if in � years or the extension year(s) gas reserve which condemns as economical is found, then the holding period of 2 years may be given to find the market and arrange the POD.

Furthermore the agreement of Production KSO, shall be valid for the maximum of �5 years and partners are obliged to submit the first year WP&B at the latest of � month commenced from the effective date and must perform the

definite commitment for the first three years.

Pertamina EP also reserves the right to terminate the agreement unilaterally if definite commitment in the first, second, and third year is not performed. The agreement shall also be terminated automatically if at the end of the third year the average of third year production is less than 85% of baseline production.

THE PARTICIPANTS MUST FOLLOW THE PROCEDURE:

1. Announcement PERTAMINA EP shall announce the

offering Operation Cooperation areas.

Partner candidates shall register and accept the information summary of Operational Cooperation offering, and follow the Data Show.

2. Info memo AccessAfter learning the

KSO Bidding Manual and intending to follow the process of KSO bidding, Partner candidates must access the Infomemo

documents that consist of technical information, bidding proposal procedures and KSO Agreement draft by signing the Confidentiality Agreement. Infomemo documents may be accessed in PT. Patra Nusa Data with the price of US$ �,500 (four thousands and five hundred US Dollar).The payment should be transferred to :

PT PATRA NUSA DATA Bank Mandiri Cabang Graha ElnusaAccount Number: 127-009-7016370Swift Code : BMRIIDJA

3. Data Administration SubmissionFurthermore, Partner Candidates

who intend to follow the next bidding procedure, shall submit the general administrative data required. The completeness of such data will be checked by PERTAMINA EP. While the administrative data checking is carried out, Partner Candidates are given the chance to complete the administrative data

4. Data ReviewAlong with the administrative data

checking performance, Partner candidate could review data in PT. Patra Nusa Data

5. Data AccessPartner candidates intended to follow

Operation Cooperation Meeting in Four Season Ballroom Jakarta, 20 Agustus 2009

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the next bidding process should purchase the License of Data Use to access the data through PT Patra Nusa Data as data provider in accordance with the prevailing provision. The payment of such License of Data Use should be transferred to:

PT PATRA NUSA DATA Bank Mandiri Cabang Graha ElnusaAccount Number: �27-000-�8�26�5Swift Code : BMRIIDJA

6. Bid Document Submission The tender participant should submit

the entire bidding document before the closing date of the tender. The bidding document consists of 2 covers, cover one consists of administrative and technical

data, and cover two consists of com-mercial data. Bidding documents on cover one shall include the copy of receipt of Infomemo purchasing and the License of Data Use.

7. Administrative and Technical Evaluation

Administrative evaluation will be made to the validity of Bidding Letter, legal documents especially made for KSO Bidding. Technical evaluation will be made to the technical study, economic studies, definite commitment. For technical evaluation of Partner Candidates clarified to meet the administrative requirements will be asked to do the technical presentation.

8. Commercial Evaluation

For Partner Candidates who comply with the requirements consisted in cover one, will go through the commercial evaluation which covers the profit sharing bidding and opportunity cash payment 9. Announcement of Awardee

10. Contract SigningWithdrawal of Infomemo to the

candidate having interest in being Candidate Partner, shall commence from 2� August – �8 September 2009 in PT. PATRA NUSA DATA domicile in:

Operation Cooperation Bidding Team PERTAMINA EP

Graha Elnusa Lt.5, Jl. TB Simatupang Kav 1BJakarta Selatan 12560Phone : 75882510, 7816770Fax : 75882511, 7816775

Administrative data submission to be verified shall start from 2� August 2009 until �8 September 2009

Data Room shall start from 2� August 2009 until �8 September 2009 for Partner Candidates submitted the administration requirements.

Data Package Access shall start from 2� August 2009 until 2 October 2009 for Partner Candidates submitted the administrative requirements. Partner candidate who has accessed the Data Package shall have the opportunity to have site visit at its own cost.

General information related to Bidding Procedures shall be given to all Partner Candidates who have completed the administrative data and have accessed the Data Package. General information shall be on 6 October 2009.Bid Document Submission shall open on 2 November and close on 6 November 2009 at � p.m.

Technical Bid Document Presentation by Partner Candidates to KSO Bidding Team shall be scheduled henceforth.The announcement of data administrative examination result and the signing of contract shall be scheduled henceforth.

As described by the following flow chart :

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Opportunities (I)

BONE BASIN

The Bone Basin is located mostly offshore between and seaward of Sulawesi’s two southern peninsulas. It is rimmed by faults and is bounded by an igneous arc to the west and a metamorphic belt to the east.

carbonate-clastic sediment equivalent to the Tonasa/ Makale Formation.

I. INTRODUCTIONThe Bone Basin is situated between the

southwestern volcanic arc and southeastern collision complex of South Sulawesi region (Figure �). The basin is clearly rimmed by major N-S oriented marginal faults; sub parallel to its axis. The southwestern margin of the basin is bounded by N-S oriented Walanae and West Bone Bay Fault Systems, while the northeastern margin of the basin is bordered by East Bone Fault System.

Three main depocentres can be identified in this area: firstly, easterly dipping depocentre which is known as North Bone Sub-basin located in the northern tip of the basin, and the other two depocentres are located in the southwestern part of the Basin, these include a westerly dipping half graben system of South Bone Sub-basin which is bounded in its western margin by easterly dipping of West Bone Bay Fault System. The other depocentre is located in the southwestern most of the basin, which is typified by easterly dipping half graben system of SW Bone Sub-basin and bordered in its eastern margin by westerly dipping of Walanae Fault System.

II. REgIONAL gEOLOgYII.1 Tectonic Setting

The island of Sulawesi is situated at the locus of the triple junction between three large colliding plates. The Indo-Australian with the Australian Craton is colliding in a NNE direction, the Pacific-Philippine plate is moving WNW and Eurasia (Sundaland Craton) is relatively stable (Figure 2). The convergence zone of this triple junction is a composite region of micro continental fragments, accretionary complexes, extensional basins, melange terrains, island arcs and ophiolitic nappes. Sulawesi is formed of distinct north-south trending tectonic provinces (Sukamto, �975). This comprises from west to east the Western Sulawesi Plutonic-Volcanic Arc, the Central Sulawesi Metamorphic Belt, The East Sulawesi Ophiolite and micro continental rocks of Banggai-Sula and Buton-Tukang Besi. (Sukamto, �975; Hamilton, �979; van Leeuwen, �98�; Parkinson, �99�) The southern part of the Sulawesi composes of various element tectonics. The major

It initially formed on the margin of the Southeast Asia Plate in a fore-arc setting, but with the subsequent collision of the Australasian Plate it now has a back-arc position. The

basins within the two open acreages are located at the boundary of a collision between two tectonic elements, the north moving northwestern continental margin of

Australia, and a subduction related island-arc system, previously located north of the continent.

Tertiary sedimentation filling of the Bone Basin was initiated by deposition of the Middle-Late Eocene syn-rift deltaic-shallow marine sediment equivalent to the Toraja / Malawa Formation and followed by deposition of the Oligo-Miocene marine

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structural elements, these are: the Western Sulawesi Plutono- Volcanic arc, the Eastern Sulawesi Ophiolite Belt.

Although the Bone Basin and adjacent areas have been subject to a complex structural history, there is little evidence from the two published seismic lines across the basin for major structuration - the presumed block faulted basement is not clearly visible. Overthrusting to the west is recorded from both the eastern and western flanks of the basin, but there is no evidence of it occurring within the Bone Basin. The only indication of transgression is a diapir-like anticlinal feature that developed during the Miocene.

II.2 StratigraphyGeneral stratigraphy of the Bone Basin

ranges in age from Cretaceous to Pliocene (Figure �). Balangbaru Formation

These formations consist of flysch sediments deposited in bathyal to abyssal water, probably in a trench system. Cretaceous flysch is associated with ophiolites of oceanic crustal origins. Cretaceous flysch is associated with ophiolites of oceanic crustal origins. It has been postulated that remnants of Cretaceous basins form along the late Cretaceous plate margin (Bransden et al., �992).

Kalumpang FormationThese formation overlays the

Balangbaru Fm, this formation consist of sandstones, shales and claystones interbedded with volcanic conglomerates, breccias, tuffs, lavas, limestones and marls (Sukamto, �982).

Malawa/Toraja FormationThe Middle-Late Eocene sequence is

represented by deposition deltaic-shallow marine sediment of the Toraja/Malawa Formation. Paleogeographic reconstruction of the Middle-Late Eocene age reveals that the deposition of this syn-rift sediment was deposited in non-marine/continental to

marginal marine environment and gradually changes eastward to the open marine environment, and was strongly influenced by N-S orientation of an extensional graben system. The formation of those an extensional fault system is interpreted be part of the initiation of the Walanae and West Bone Fault system that occurred along the western margin of the Bone Basin.

In the Sengkang Sub-basin, the Eocene sediments of the Toraja/Malawa Formation comprises of claystone, sandstones, conglomerates, coals, limestones and interbedded volcanics. The formation is generally non-marine sediments which laterally toward to the

north of the Kalosi Block is dominated by red argilaceous sediments of the fluvial sediments in the lower part, and fluvio-deltaic, marine sediments, and marine clastic and carbonate rocks. The thickness of these deposits varies between less than a hundred meters to over a thousand meters (Coffield et al., �99�), and thickness variations are inferred to be controlled by block-faulting (Gerrad et al., �989).

Langi FormationThis formation consists of lavas

and pyroclastic eposits of andesitic to trachy-andesitic composition with rare intercalations of limestone and shale

towards the top of the sequence (van Leeuwen, �98�; SUkamto, �982). The calc alkaline nature, and enrichment of certain light rare earth elements, suggests that the volcanics were subduction related (van Leeuwen, �98�; Yuwono, �985), probably from a west dipping subduction zone (van Leeuwen, �98�)

Tonasa/Makale FormationThe Tonasa Limestone Formation

conformably overlies the Melawa Formation and the Langi Volcanics. This formation consists of four members `A`, `B`, `C` and `D` from bottom to top. The `A` member comprises well bedded calcarenite, the `B`

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member is composed of thickly-bedded to massive limestone, the `C` member consists of a thick sequence of detrital limestone with abundant foraminifera and the `D` member is characterized by the abundant presence of volcanic material and limetone olistoliths of various ages (van Leeuwen, �98�; Sukamto, �982) A ramp type margin is inferred for the southern margin of the Tonasa Formation, and the Tonasa Carbonate Platform is composed mainly of shallow water facies, whilst redeposited facies predominated the northern margin (Wilson, �995).

Camba FormationThis formation consists of two members.

They are Lower Member Camba Formation and Upper Member Camba Formation. The Lower Member Camba Formation consists of tuffaceous sandstone, interbedded with tuff, sandsatone, claystones, volcanic conglomerates and breccia, marls, limestones and coals (Sukamto, �982; Sukamto & Supriatna, �982). The Upper Member Camba Formation described here as the Camba Volcanics, is located in the Western Divide Range forming the ‘Backbone’. This member consists of volcanic breccias and conglomerates, lavas and tuffs interbedded with marine sediments (Sukamto, �982; Sukamto & Supriatna, �982).

Tacipi FormationThe Tacipi Limestone consists of

limestones and calcareous shales which stratigraphically unconformably overlay the Camba Formation in the Kampung Baru-� and eastward in Sallo Bullo-�, this rock unit directly conformably overlay the marly limestone unit of the Camba Formation. The Tacipi Limestone widely distributes in N-S orientation over the western margin of the Bone Basin. It is interpreted that the Tacipi Limestone was deposited above the

N-S direction of structural high along the Walane Fault System. The Tacipi Limestone composes of pelagic mudstone in the lower part vertically grades upwards into bioclastic wackstone with abundant coral debris and eventually reefal limestones which consists of packstones, grainstones with minor wackstones.

walanea FormationWalanea formation is locally

unconformable on the Tacipi Formation and in places. This formation can be divided into two intervals: a lower interval made

up of calcareous mudstone and an upper interval which is more arenaceous.

III. Petroleum SystemBasement is may variably comprise of

metamorphic rocks including blueschists, Late Jurassic to Early Cretaceous ophiolites and Cretaceous pelagic cover overlain by a Late Cretaceous deepwater fore-arc sequence. Extension occurred throughout Sunda land in the Eocene and led to the opening of the Makassar Strait and is presumed to have resulted in the formation of the Bone Basin. The presumed Syn-rift unit is undrilled in theBone Basin. The oldest sediments encountered in BBA-�, are probably of early Miocene age and are assumed to relate to the Post-rift Sag unit. They comprise deepwater turbiditic sandstones and conglomerates overlain by calcareous claystones with thin limestone interbeds.

The IND-09 seismic section across the basin reveals that relatively steady subsidence took place through the Miocene and Pliocene. Deposition was predominantly axial from the north. The Late Miocene to Early Pliocene marks a regressive interval when the lateral equivalents of the Tacipi Formation carbonates became established on the

margins of the Bone Basin and a fan delta sequence can be observed to prograde across the basin from the west. An angular unconformity near the Miocene/Pliocene boundary associated with uplift of the Latimojong Mountains marks a return to deepwater conditions when reefs of the Tacipi Formation were flooded and covered by pelagic marls of the Walanae Formation equivalent. A thin Pleistocene sequence is recognized from the BBA-� well.

Two petroleum systems are proposed. By analogy with the Sengkang Basin the Tacipi-Walanae Equivalent Petroleum System is of Late Miocene to Recent age. The Tacipi and Walanae Formations are assumed to provide the source, as well as the carrier beds for migration. The Walanae Formation is an efficient regional seal and provides most of the overburden necessary for source rock maturation. A Syn-rift Petroleum System may also be present. Organic-rich distal pro-delta shales and mudstones represent the source, turbiditic elastics the carrier and reservoirs, and deepwater claystones the seal. The low geothemmal gradient recorded in BBA-� indicates that the source for the Tacipi-Walanae Equivalent Petroleum System is largely immature and therefore a Syn-rift unit source may be responsible for the fluors recorded in the east of the basin.

III.1. Source RockSince the exploration activity in the

Bone Basin is very limited the information of the source rock potential is also very lacking, however they should save some potential source rocks in the epicenter area. Petroleum geology evaluation of the South Sulawesi region exhibits that the Eocene carbonaceous shales or coals of the Toraja/Malawa Formation are postulated to be the source rocks for hydrocarbon generated in the most the Tertiary basin in this area, although none of the wells in this basin were penetrated them. Evidence was mainly obtained from surface samples collected in the eastern onshore area of the basin and combining between synthetic well geochemical modeling obtained from seismic sections to evaluate the maturity level of the source rock. In general the surface rock samples indicate that source rock potential of the Toraja/Malawa Formation.

The average TOC values for the black shale are ��%. Coal with ��% TOC containing predominantly type III vitrinitic kerogen. Basinal facies of the Eocene source rocks of type II kerogen that may deposited in the basin composed of mudstone and a thick sequence of marine calcareous claystone.

Potential source rocks, comprising deepwater restricted marine mudstones,

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may occur in the Syn-rift, Post-rift and Collision units. The detection of some Airborne Laser Fluorosensor (ALF) fluors in the eastern side of Bone Bay is indicative of a working petroleum system. A number of fluors have also been recorded from the basin’s southwestern margin. They might indicate long distance migration from depocentres in the Bone Basin or may originate from Paleogene coals such as occur in the Spermonde Basin of South Sulawesi.

In the neighbouring Kalosi PSC area, northwest of the Bone Basin, the source rocks for the oil seeps are coals and

carbonaceous claystones deposited in fluvio-deltaic environments in the upper portion of the Eocene Toraja Formation. In the kitchen with large amounts of coals and organic-rich shales it is significant quantities of liquids in solutions with gas are expulsed at an early stage of maturity (Ro around 0.6). Usually, the type of kitchen is strictly associated to delta plain deposits and the migration follows the easiest paths that correspond to sandstone channels and well interconnected mouth bar distributary channel. The decrease of pressure and temperature up dip is accompanied by retrograde condensation with phase separation. Due to the good vertical interconnection usually present in this type of deltaic succession, the gas and oil start to segregate vertically, inside the same reservoir unit. Higher gas contents are found close to the main seal while oil contents increase progressively downward.

Also the excess of pressure at the top of very thick hydrocarbon accumulations sometimes exceeds the capillary barrier of seal with consequent vertical migration, mainly of gas. Kitchen with large amounts of low TOC organic shales expulse, around Ro= 0.6% and the bottom corresponds to the beginning of the hard over pressured zone (�.6 deg).

Geohistory modeling reconstruction of the Bone Basin based on the combination of BBA-�X well and seismic lines have been made to build the better understanding oil and gas maturation modeling. The

predicted thickness of the Tertiary sediments in basinal low areas is about 2�,000 ft. The geothermal gradient recorded from BBA-� is �.7°C/�00 m. Other reported the geothermal of the Sengkang Basin (onshore extension of the Bone Basin) is �.� deg F/�00’ or �.9 deg C/�00m. This value is low and if representative of the basin as a whole then only the deeper parts of the Miocene sequence would have achieved maturity.

Maturation modeling that is conducted in the East Sengkang Sub-basin based on the deepest well (Sallo Bullo-�) with �2000 ft thick sediment indicates that the

early hydrocarbon generation for the East Sengkang Sub-basin is approximately 5000 ft depth and the mid mature area could be below 8000 ft depth. The coal with sufficient organic matter within the hydrocarbon generation should generate some gas. Hydrocarbon has been started to migrate (critical moment) at Late Miocene (ca. 2.5 Ma).

Maturation modeling of the North Bone Sub-Basin was reconstructed and modeled based on the BBA-�X well and combining with seismic lines to determine layers below total depth. The predicted thickness of the Tertiary sediments in the low areas is about 2�,000 ft thick. The potential hydrocarbon generation for the North Bone sub-Basin is approximately 6000 ft depth and mid mature zone could be below �5,000 ft depth. Based on the basin modeling scenario, the zone of oil destruction (gas zones) may be started at �7500 ft depth. Hydrocarbon has started to migrate (critical moment) at Late Miocene (ca. �5 Ma). Any source rock potential deposited in Eocene should generate gas.

III.2 ReservoirToraja/Malawa Sandstone Reservoirs

The Middle-Late Eocene deltaic-shallow marine syn-rift sandstones of the Toraja/Malawa Formation that deposited within the N-S trending graben system can be acted as primary reservoir objectives in the Bone Basin (Figure 2). The Toraja/Malawa Formation is believed to extend throughout

most of the western part of the basin, but in some part may be locally affected by volcanics product or non deposition on structural high as can be observed in southern part of the basin (SW Bone Sub-basin). The Middle Eocene Malawa reservoirs (20 m thick) have 20 % porosities. Coals which are formed within the Eocene sandstones generally have 2-6 meters of thickness. Middle-Late Eocene paleofacies reconstruction of the South Sulawesi region indicate that the depositional facies of the equivalent Toraja/Malawa Formation ranges from coastal plain to open marine environment. Provenance study from the surface samples exhibits the litharenite and lithic graywacke of Toraja/Malawa Formation were derived from recycled orogene. Regional seismic line crossing the basin shows that the lateral continuation of the Middle-Late Eocene sediment was probably deposited as deep marine basin slope or basin floor fan deposits.

Oligocene Limestone ReservoirThe Oligocene reservoir is widely

distributed in the South Makassar Basin. Regionally this reservoir unit can be correlated to the Berai Limestone in the Barito Basin, in Kalimantan. In South Sulawesi region this rock unit is represented by a thick shallow marine limestone (The Tonasa Limestone) which was deposited mostly in neritic environment. The limestone composition varies from micritic-biomicritic limestone to packstone-grainstone.

Outcrops observation indicate that the reservoir quality in general is poor to very poor with permeability value is about 0.06 mD and porosity 6 %, although the composition are relatively coarse grained pack-grainstone. Late Oligocene paleofacies reconstruction of the South Sulawesi region indicate that the depositional facies of the equivalent Tonasa Formation ranges from carbonate platform facies-open marine facies.

Tacipi Limestone ReservoirThe other possible reservoir rock which

may formed within this basin is the Late Miocene-Pliocene carbonate build-ups which equivalent to the Tacipi Limestone in the East Sengkang Sub-basin. The equivalent to Late Miocene-Pliocene Tacipi Limestone that developed along the N-S trending western margin of the Bone Basin can also be acted as good reservoir in this area. Paleofacies map of Late Miocene-Pliocene time indicate that the reefal facies of the Tacipi limestone was deposited along N-S orientation structural high that formed along the Walanae Fault Zone.

Southward extension of this zone can be recognized in Sw Bone Sub-basin.

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In East Sengkang Sub-basin, very good reefal associated reservoirs can be recognized in Peniki-� (��5 m), Walanga-� (�2� m), and Kampung Baru-� (68m). These types of limestone reservoirs are predominantly formed by algae, coral, foraminifera, and moluscs wack-boundstone. The porosity value ranges from �5-�9 % of mouldic, vuggy, and intergranular types while permeability varies less than �-�200 mD. Late Miocene- Pliocene Facies Map of the Tacipi Limestone exhibits that the best place for further exploration activity should be focused on the N-S orientation platform area in which possible reef and associated facies are developed. Seismic and well data analyses indicate that the carbonate Unit-C of the Tacipi Limestone was formed. These facies are composed of algal reef, reef front, inter reef and back reef. The porosities in general range from 20- �0 % and permeability exceeds �00 mD in the reef facies and about �0 mD for the associated facies (packstone). The reefal development can also be seen in eastwards in the offshore Bone Bay, and westwards onshore of the Sengkang Basin. Compared to the East Basin, those two areas have not yet intensively explored.

walanae Clastic ReservoirEastward pragradation of Late Miocene

deltaic sediment equivalent to the Walanae Formation can also be recognized in this basin. It contains thick sandstones reservoir. In East Sengkang Sub-basin (Kampung Baru-�) the Walanae Formation sandstone member is 50 m thick and is sealed by intra formational claystones. It was deposited in shallow to marginally marine fluvio-deltaics. In Sampi-Sampi, the sandstone is 90 m thick formedfine to medium grained and appears to have good porosity. This reservoir interval has not been previously explored for hydrocarbon although several wells (KB-5, SB-�, Peniki-�, KB North-�, and Lamata-�S) indicate gas show in this formation.

Two main Neogene sequences can be identified in the N Bone Sub-basin, comprising a ��00 m thick section of mostly shales and marls of Middle Miocene age, and basal (?) sands and conglomerates (�70m), and a �600 m thick Plio-Pleistocene clastic series, rich in sandstones interbedded with shales. The coarse clastic content in the sands and conglomerates, frequently in the argilaceous matrix, is made of various elements that include quartz granodioritic particle. Plio-Pleistocene sediments can be sourced from the mafic rocks and metamorphosed greenschists rimming the Gulf of Bone on its east flank, and huge intermediate intrusive body present between the Gulf of Bone and Palu which may contribute most

of volcanoclastic materials of the Plio-Pleistocene sediments.

III.4. Seals and MigrationThe upper portion of the Middle-Lower

Eocene sediments, consisting mainly of deep water (bathyal) shales/claystone deposits, may have acted as good potential seal for Eocene reservoirs.

Another potential seal for hydrocarbons is the Late Oligocene sequence of the lower part of the Tonasa/Makalele Formation, which predominantly consist of a deep water shale fill sequence. The Oligo-Miocene sequence of the upper part of the Tonasa/ Makale Formation, mainly formed as a deep water carbonate, can also act as potential seal in this area. In the western margin of the basin, the Tacipi Limestone reservoir is effectively sealed by tight clays and silts of the Walanae Formation, often rich in volcanoclastic components. The Walanae Formation overlays the Tacipi Limestone conformably, and forming a drape of claystone and marls which interfinger with and seal the Tacipi Limestone.

Lateral equivalents of the Walanae Formation are postulated to be seals in the Bone Basin. Fine clastics the basal part of the Late Miocene to Pliocene Walanae Formation are the principal seals in the adjacent Sengkang Basin where they form gentle drapes over the reefal Tacipi Formation reservoirs.

Various seal intervals are available in this basin, the upper portion of the Middle-Late Eocene sediment which is mainly formed shales/mudstones of the deep water (bathyal) deposit may acted as good seal potential for Eocene reservoirs in this area. Other seal potential for hydrocarbon is the Late Oligocene sediment of the lower part of the Tonasa/Makale Formation which predominantly consists of deep water shale fill sequence.

In the Lower Bone Basin, the hydrocarbon migration is dominantly laterals without a strong control of the regional up-dip. The kitchens located in the deltaic environments are efficiently drained by the contiguous sandstones channels, as the mouth bars present poorer reservoir properties. The inter-connection within the delta components also migrates on relatively great distances; while, when the sand bodies are isolated, they form local stratigraphic traps. Vertical migration is a subsidiary component of migration in the Lower Bone Basin and it is interpreted to occur where the sand/shale ration of fluvial deltaic deposits exceeds �5% or where they are faulted. Vertical migration of hydrocarbons with retrograde condensation and shallow accumulation of gas (rarer of oil) is related to sand-rich

successions without effective internal seals or to intensive faulting of reservoirs.

III.3. Trap and Play SystemThe oil or gas fields in the Bone

Basin are associated with structural trap (anticlines or faulted blocks), but the stratigraphy component in the trap of hydrocarbons remains still very important. In the onshore fields the hydrocarbon accumulations are strongly controlled by the structural closure, the reservoirs mainly represented by sandstones of marginal marine fluvio deltaic-shallow marine and reefal and carbonate build ups of coastal plain to open marine, both along the flank of the structure, both in the crest, present mixed structural/ stratigraphic trapping.

Future hydrocarbon exploration targets in the Bone Basin that are suggested should be focused on two different areas. For the shallow target, the exploration activities should be focused to search the occurrence of the Middle Eocene tilted fault block that involve the deltaic-shallow marine reservoir equivalent to Toraja/Malawa Formation along the N-S trending basin margin, especially in the SW Bone Sub-basin. The tilted fault block of the shallow marine, basin slope and basin floor fan reservoirs may also occurred in the S. Bone Sub-basin.

The middle Miocene to Pliocene sediments comprise clastic/ volcanoclastic deposits equivalent to the Camba Formation with carbonate deposition in some parts of the basin. The Late Miocene depositional process in this basin was typified by shallow marine carbonate deposition.

REFERENCES

- Darman H., and Hasan Sidi F., 2000, An Outline of The Geology of Indonesia, Published by IAGI-2000, pp �0�-�20.

- Lemigas, �998, Hydrocarbon Potential of the Bone Basin and Its Surrounding Basinal Area, unpublished report.

- Yulihanto B., 200�, Hydrocarbon Play Analysis of the Bone Basin, South Sulawesi, Proceedings, Deepwater and Frontier Exploration In Asia &

- Australasia Symposium, pp. ���-��7.

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Salawati Basin regionally is located in Salawati Basin. Salawati is one of the four major islands in the Raja Ampat Islands in west Papua (formerly Irian Jaya), Indonesia. Its area is 1623 km². The other main islands in the archipelago are Misool, Batanta and waigeo. Salawati Basin is situated along the western edge of the Kepala Burung region, Irian Jaya. The basin is bounded to the north by the so called Sorong Fault Zone. The Ayamaru High forms the eastern boundary, and separates the Salawati from the Bintuni Basin. To the south, the basin is limited by the Misool-Onin anticline and to the west is obscurely bounded by the extension of the Sorong Fault. Both onshore and offshore portions of the Salawati Basin dip regionally to the northwest.

Salawati Basin

Opportunities (II)

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The basin is made up of three prominent structural and depositional elements (Vincelette and Suparyadi, �976): a shallow shelf which

adjoins the Ayamaru High on the east and south; an area which was conducive to prolific reef development; and a deep trough extending to the Sorong Fault Zones into where a thick section of Pleistocene clastics accumulated.

New Guinea is divided between the independent nation of Papua New Guinea on its eastern side, and the easternmost - and single largest - province of Indonesia, Papua, the western half of which is seen here. According to the World Wildlife Fund, New Guinea as a whole is home to the world’s third largest block of unbroken tropical rainforest and contains as many distinct bird and plant species as Australia in just one-tenth its land area - including unique animals such as tree kangaroos and almost all the world’s birds of paradise. Its many tribes speak around ��00 different languages, making it home to almost one fifth of global languages.

The shape of New Guinea is often compared to a bird, with its westernmost extremity as its head. Attached to what is already an ecologically rich island, the

Bird’s Head Peninsula is a particular treasure house.Its beaches are nesting sites for endangered Leatherback turtles, while the montane rainforest of its northeastern highlands – including the 6�000-hectare Arfak Mountains Nature Reserve - is renowned for its many species of bird-wing butterflies and birds.

The relative inaccessibility of the rugged terrain of the Arfuk Mountains means this habitat remains largely intact, although being close to the expanding population centre of Manokwari it is increasingly encroached upon by road construction, expansion of commercial agriculture and ranching. The southern part of the Bird’s Head Peninsula is made up of lowlands and coastal swamps, through which long rivers run down from the mountains to the sea, as is the Bomberai Peninsula seen below it.

I. INTRODUCTIONThe Salawati Basin is a late Tertiary local

depression, located in the westernmost part of the Kepala Burung (Bird’s Head), Irian Jaya (Figure �). The basin is presently bounded to the north by the Sorong Fault Zone which separates the Australian Continental Plate to the south from the Pacific Oceanic Plate to the north. It is separated from the Bintuni Basin by the Mio-Pliocene Ayamaru

High, where Miocene shelf carbonates crop out. Southward, the basin is limited by the Misool-Onin Geanticline. The continuation of the Sorong Fault Zone bounds the basin to the west.

Structurally the region is very complex, particularly in the area near the Sorong Fault Zone, which represents the remnant of the mobile belt. The fold trend consists of elongated, narrow, highly faulted, asymmetrical anticlines which are slightly oblique to the Sorong Fault. The intensity of folding decreases from north to south. In the area adjacent to the Ayamaru High, the predominant structural trend is northwest to southeast, marked by an alignment of broad culminations and depressions. Tertiary deposition in this area was characterized by an Eocene to early Oligocene transgression, a late Oligocene regression, early to middle Miocene transgression, and a late Miocene regression. Over 6000 m of Tertiary marine sediments are present in the Salawati basin, with deposition commencing probably as early as Paleocene time.

The sediments of Eocene to early Oligocene age in the Salawati Basin consist of limestones, dolomites and marls (Faumai Formation). Sedimentation continued until late Oligocene time

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with the shale, sandstone and coals deposition of the Sirga Formation, whose thickness decreases gradually southward. Deposition was interrupted during very late Oligocene time. Then in early Miocene time, carbonate deposition was established and the platform limestones of the Kais Formation became widespread throughout the basin. In the deepest part, the Kais changes laterally into the Klamogun basinal limestone but along the shelf and slope reef growth was able to keep pace with the relative rises in sea level. These reefs are multistory buildups which grew to heights of �00 to 500 m and exhibit at least four stages of transgressive. Kais reefal development. The off-reef sedimentary sequences consist of reef talus and reef banks interbedded with marls of the Klasafet Formation.

Towards the end of Miocene time, subsidence accelerated and resulted in the deposition of the thick regressive clastic sequence of the Klasaman Formation. Clastic sediments derived from the northern positive source area eventually led to the cessation of carbonate deposition in the Salawati Basin. Clastic sedimentation then continued to predominate throughout Plio-Pleistocene time.

II. STRATIgRAPHYIn general, the Salawati Basin can be

grouped into fourth sedimentary regimes, these are: �) Pre-Carboniferous Basement, 2) Permo-Carboniferous Sediments, �) Jurassic-Cretaceous Sediments, and �) Tertiary Stratigraphy (Figure �).

Pre-Carboniferous BasementKemum Formation

The Kemum Formation (Visser & Hennes, �962) forms a basement block in the central part of the Birds Head where it is bounded by the Sorong Fault Zone to the north and the Ransiki Fault Zone to the east. To the south and southwest, rocks of Late Paleozoic, Mesozoic and Cainozoic age, overlie the basement block with angular unconformity.

The lower contact of the Kemum Formation is not exposed and the unit has a minimum thickness of a few thousand metres. The age of the unit is based on sparsely distributed Silurian graptolites and Devonian ostracods. A K-Ar age of about �250 my for a granodiorite pebble in a metaconglomerate indicates a Precambrian provenance. The Kemum Formation is intruded by Late Carboniferous and Perm-Triassic plutons of the Anggi Granite, and by dykes of basaltic or andesitic composition yielding Pliocene K-Ar ages.

The unit consists dominantly of low-grade metamorphic rocks comprising thinly interbedded pelitic and psammitic layers with sedimentary textures and structures typical of distal turbidites. The main rock types are slate, slaty shale, argillite and metawacke; meta-arenite and meta-conglomerate are less common. Thin intercalations of recrystallised limestone and dykes or sills of metavolcanics are rare. A much less widespread sandy facies consists of locally calcareous quartz-rich metawacke and meta-arenite and siliceous

slate or argillite.

Permo-Carboniferous SedimentsAifam Group

The Aifam Group was defined by Pigram and Sukanta (�982) who upgraded the original definition of the Aifam Formation of Visser and Hermes(�962). The type area for the group is the Aifam River, a tributary of the Aifat (Kamundan) River, in the central Birds Head. The Aifam Group crops out in the Birds Head, southern Birds Neck, along the southern margin of the Central Range and is known from a few petroleum exploration wells. In the Birds Head region the Aifam Group crops out along the south side of the Warsamson Valley, and as a belt extending eastwards from the Aifat River to the Mios River. In the Birds Neck the Aifam Group is restricted to thin metamorphosed slivers along the west flank of the Wondiwoi Mountains.

In the Warsamson Valley the Aifam Group is undifferentiated and consists of a basal arkose overlain by well-bedded quartz sandstone, calcareous shale and shaley limestone in turn overlain by black shale. The group appears to rest on the Early Carboniferous Melaiurna Granite. However, a sample of limestone in float yielded thelodont fish scales of Devonian aspect (Young and Nicoll, �979).

In the central Birds Head the Aifam Group is divided into three formations. The lowest is the Aimau Formation and consists of basal thin red conglomerate, sandstone and shale with silicified wood, overlain by a sequence of well-bedded siliceous sandstone and greywacke interbedded with shale, siltstone and grey limestone. The overlying Aifat Mudstone consists of black calcareous mudstone with abundant concretions, minor dirty limestone and rare thin quartz sandstone beds. The uppermost Ainim Formation consists of interbedded carbonaceous silty mudstone, quartz sandstone, greywacke and siltstone, and contains coal seams up to � m thick. The Aifam Group rests unconformably on the Siluro-Devonian

Kemum Formation.The Aifam Group ranges in age from

Middle Carboniferous to Late Permian at the type locality. Numerous fossils throughout the group include silicified wood, plant fossils, conodonts, corals, bryozoa, brachiopods, ammonoids, fusulinids, crinoids and a single trilobite.

Jurassic-Cretaceous SedimentsKembelangan Group

The Kembelangan Formation was originally defined Visser and Hermes (�982) and raised to group status Pigram and

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Sukanta (�982). The Kembelangan Group crops out throughout eastern Birds Head, Birds Neck and Central Range. In the Birds Head the Kembelangan Group contains of the Jass Formation (Pigram & Sukanta, �982) where consists of black to brown partly calcareous and mudstone, lithic sandstone, muddy sandstone and limestone with a little quartz sandstone, and quartz or polymictic conglomerate. The maximum thickness is approximately �00 m.

In the Birds Neck the Kembelangan Group is exposed in the cores of tight anticlines of the Lengguru Fold Belt. In the west and centre the group consists of alternating sandstone and mudstone which are progressively metamorphosed in an eastward direction. Along the eastern coast of the Birds Neck and in the islands offshore in the Transition Zone between Continental and Oceanic Provinces, the Kembelangan Group is dominated by mudstone which has also been metamorphosed to slate.

In the Central Range around the Wissel Lakes, the Kembelangan Group consists of alternating sand and shale in the south and a sequence dominated by mudstone and partly metamorphosed in the north, largely in the Transition Zone between the Oceanic and Continental Provinces. The same nomenclature that was applied to the formations in the Birds Neck has been used in the southern region. The Middle to Upper Jurassic Kopai Formation consists of light grey quartz sandstone which is argillaceous, glauconitic and calcareous, interbedded with black to grey silty mudstone, minor conglomerate, calcarenite, calcilutite and greensand.

Tertiary Stratigraphywaripi Formation

The Waripi Formation (Visser & Hermes, �962) out crop in the western mountains of the Central Range from where it extends westwards into the southern extremis of the Birds Neck. The formation consists of well-bedded, sandy oolitic calcarenite and biocalcarenite, calcareous quartz sandstone and red-brown oolitic biocalcarenite. The limestone commonly

dolomitic and in many places contains foraminifera. The maximum estimated thickness of the Waripi Formation is 700 m in the upper Baupo River; Visser and Hem (�962) estimate a thickness of �80 m at the west end its distribution range but state that the formation thick and disappears in eastern Irian Jaya.The Waripi Formation contains no age-diagnostic fossil. The Waripi Formation is probably of Paleocene age. The clastic detritus in the formation was probably derived from the south; the oolites suggest a shallow carbonate bank and the formation was probably deposit on a very shallow shelf.

Faumai LimestoneThe Faumai Limestone (Faumai

Formation of Visser & Hermes, �962) can be recognized in outcrop only in the eastern part of the Birds Head, where it is overlain by the clastic Sirga Formation and is separated by it from the later, Miocene part of the New Guinea Limestone Group.

Theoutcrop of the Faumai Limestone extends from the eastern side of the Ayamaru Plateau eastwards to the coast of Cenderawasih Bay. The Faumai Limestone is a well-bedded arenacous limestone consisting of calcarenite which is commonly muddy. It is about 250 m thick. The limestone represents carbonate bank and shoal deposits. It contains abundant larger foraminifera which date it as Ta to Tb or middle Eocene to Oligocene. Lateral equivalents of the Faumai Limestone are present in the New Guinea Limestone

Group throughout western Irian Jaya, e.g. in the Yawee Limestone, but the limestone is recognized as a lithostratigraphic.unit only in the Birds Head where it is capped by the clastic Sirga Formation.

Sirga FormationOligocene of Sirga Formation found

subsurface in the Salawati Basin west of the ayamaru Plateau. The predominant rock types in the SirgaFormation range from siltstone and mudstone in the west and south to quartz sandstone and conglomerate in the north and east. It appears to have been derived from a landmass occupying the present-day outcrop of the Kemum Formation, and to form a lens-like sheet thinning both north and south from a maximum thickness of 200 m in the Aifat River. Large and small foraminifera in the Sirga Formation yield an early Miocene age. The formation is probably transgressive and deposited in shallow water as sea-level rose after the

world-wide drop recorded by Vail and Mitchem (�979) late Oligocene times. The Sirga Formation lies conformably on the Faumai Limestone and disconformably on the Aifam Group near the Ayamaru Plateau. It is conformably overlain by Kais limestone or, in some exploration wells in the Salawati Basin, by Klamogun Limestone.

Kais LimestoneThe outcrop of

the Eocene of Kais Limestone (Kais Formation of Visser & Hermes, �962) forms a broad belt crossing the Birds Head from west to east. It consists of calcarenite and muddy

calcarenite; the patch reefs of the Salawati Basin and the southern margin of the Ayamaru Plateau are formed largely by boundstone or reef material in the position of growth. The thickness of the limestone changes considerably, over short distances; the maximum reported thickness is 557 m. The Kais Limestone represents a reef complex comprising platform and patch reef facies. The patch reefs are largely confined to the Salawati

Basin. The age of the Kais Limestone is most probably early to middle Miocene. The Kais Limestone rests conformably on

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the Sirga Formation and unconformably on the Aifam Group. It is laterally equivalent to the Klamogun Limestone, Sekau Formation, and Klasafet Formation.

Klasafet FormationThe Klasafet Formation (Visser &

Hermes, �962) crops out discontinuously across the Birds Head from west to east, though it appears to be almost continuous subsurface in the Salawati Basin at least. The formation consists of massive to well-bedded marl, micaceous and calcareous

siltstone and a little limestone.Visser and Hermes estimate the

thickness of the Klasafet Formation to be approximately �900 m. The formation is 500 m thick in the Klamono oil field. The Klasafet Formation is contemperaneous with the Kais Limestone and is a facies deposited in deeper water below wave-base in the same basin in which abundant reefs grew and merged in shallow water to form the patch reefs and platforms of the Kais Limestone. The marly sediment eventually built up to the level of the reefs and smothered them. Visser and Hermes (�962) note that the youngest sediments; shallow-water deposits and that a southward decrease clastic material in the Klasafet Formation indicate northern source for the material. The age of the Klasafet Formation is early to

middle Miocene; it may range into the late Miocene. The Klasafet Formation overlies and is probably also partly equivalent the Klamogun Limestone. The Klasafet Formation seals the oil-bearing patch reef of the Salawati Basin.

Klasaman FormationThe Klasaman Formation was defined

by Visser and Hermes (�962). It crops out over a large area of Salawati Island in the western Birds Head and along the southern side of the Ayamaru Plateau as far east as

the Kais River. The Klasaman Formation has been penetrated in many wells drilled in the Salawati Basin.

The late Miocene to Pliocene Klasaman formation consists of interbedded sandy, partly calcareous mudstone and muddy, partly calcareous sandstone. In the upper part conglomerates and lignite seams occur. Minor molluscan coquina beds are also present. Conglomerates are more common to the north. The maximum thickness is about �500 m. Benthonic and pelagic foraminifera, molluscs and bryozoa are the most common fossils.The Klasaman Formation rests conformably on the Klasafet Formation to the south and disconformably on it in the north. The Kalasaman Formation is overlain unconformably by the Quaternary Sele Conglomerate. The

Klasaman Formation is an immature source rock. Some of the coarse clastic beds near the northern parts of the Salawati Basin may have reservoir potential.

Sele ConglomerateThe Sele Conglomerate was defined

by Visser and Hermes (�962). It crops out on Salawati Island and in the western Birds Head, east of Sorong. It consists of polymictic conglomerate with thin claystone and sandstone intercalations. Plant remains are common. Maximum

thickness is �20 m. No diagnostic fossils have been found the formation and is therefore younger than Pliocene.

III. PETROLEUM SYSTEMSource rockS

The potential source rock base on geochemical analyses indicated that the source rock is rich in fresh brackish water algae and higher plants and the oil was generated at about middle maturity level. The gas chromatography analyses suggest that the source of the crude is generated from a mixture

of terrestrially derived organic matter and bacterial bodies (algae), deposited under rather acidic, low oxygen conditions. Generation of oil is at thermally mature levels. In the Salawati Basin several formation, which were deposited in shallow marine or paralic environments could be considered as potentially hydrocarbon source rock.

Marine Tertiary source rocks are interpreted to be the primary source of hydrocarbons in the Salawati Basin with the Late Miocene Klasafet Formation being the most likely source. In the deeper part of the basin, where the Klasafet is mature based on the Lopatin subsidence profile, the peak of oil generation (TTI 75 eq. Ro = �%) at the present time, is at around 250o F (�00oC) or �0,000’ depth. Maturation levels for the

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Tertiary source rocks also play a key role on their ability to act as effective sources of hydrocarbons, These areas are noted to be in direct communication with major depocenter containing a thick late Tertiary overburden. Similar restricted marine source rocks have been identified within the Oilgocene (e.g. TBF-�X) but are thought to be less widespread and of poorer source quality than those identified within the Miocene.

reServoir rockS

Paleocene sandstones are understood to be a major hydrocarbon reservoir within the Bintuni Basin (Wiriagar Deep, etc). Paleogeographic reconstruction (Robertson, 2000b) indicate that these sequences of interbedded shales and coarser clastics have been deposited in bathyal environments and represent turbidite deposits. These reservoir units are thought to be mainly restricted to the southern part of the Bintuni Basin. Shallow marine, possibly deltaic, sandstones are identified on Misool Island ( Daram Formation).

The principal Tertiary reservoir in basins surrounding the study are comprises bioclastic packstones and wackestones of the Middle-Upper Miocene Kais Formation. These were deposited on a shallow marine shelf with reefal build-ups developing at the shelf edge. These reefal build-ups form the reservoir in all the fields in the Salawati basin. Within the Bintuni Basin the reefs tend to be smaller and are less common due to lack of distinct shelf edge. In the Salawati basin the reefal buildups can be up to 500 m high, Reservoir quality varies widely with porosities ranging from �020%, but occasionally as high as �0% and permeabilities of between �0 and �00 mD. The main reef trend is restricted to the south central part of the Salawati Basin although reefal buildups are noted within the Berau Basin and the Onin North-� well targeted, but appeared to miss, such a reefal build-up. Reefal build-ups within the Kais Formation are not believed to have occurred over the Misool-Onin Ridge area as this area lies south of the main shelf edge at this time. The Miocene has also been removed by erosion over the Misool-Onin Ridge and consequently cannot be considered a reservoir play in this area.

Migration

In Salawati Basin migration pathway are concentrated along structural and away from the flanking structural lows. Generated hydrocarbons first concentrate (focus) around the plunging regional, flow up dip and eventually their migration pathway are controlled and enhanced by faults. In the Salawati basin, the Neogene section may act as potential source where time and depth of burial have slowed maturity to be reached. Updip lateral migration is provided in a radial from away the “kitchen area” covering the Sele strait and northern Salawati Island. In case of oil generated in the Aifam Group, upward migration could be taken places vertically through fault in to the overlying Kais reef traps. The structures of the oil fields in the Salawati basin are mostly associated with normal fault which have connected the Permian sequence with the Kais reservoir traps.

trapS

The hydrocarbon discovered in the Misool and Salawati Basins is structurally trapped by normal faulting that formed by Late Miocene and younger southwest directed compression that was wrenching fault and folding. The main seal for Tertiary reefal build-ups comprise Late Miocene- Recent claystones of the Steenkool Formation which are thickest at the eastern end of Bintuni Basin and within the northern part of the Salawati Basin. The unit is also over 6000’ thick within the deepest parts of the Berau Basin, close to Onin North-�X.

Fault blocks and anticlines – numerous examples of these play type can be observed over the Misool-Onin Ridge. The most prospective of these plays are interpreted to be those on the southern side of this complex structural feature closest to the present-day generating kitchen within the North Seram Trough and those where seal integrity has not been compromised by Late Miocene uplift.

Regional arches with multiple closures- these regional arches both on the Ridge itself, on the southern flank of the ridge and within the deepwater part of the through are prominent structural features which will have acted as a focus for migration and may have multiple closure along their length.

Slumps and fault blocks on flank of Misool-Onin Ridge and in North Seram through these plays considered highly prospective due to their location close to main hydrocarbon generating kitchens. Structural closure is observed and fault sealing is also likely.

IV. HYDROCARBON PLAYThe Miocene Klasafat calcareous fine clastics

were regarded as the best potential source rocks to generate hydrocarbons in the Salawati Basin. Most of the produced oils in the basin are from the slightly anoxic calcareous marine facies, which have a significant terrestrial kerogen component and were generated at moderate thermal maturity levels. These hydrocarbons are believed to have migrated through and been trapped in the Miocene carbonates of the Kais reefs very recently, with hydrocarbon generation and expulsion occuring only in the last few million years. This simple concept of hydrocarbon migration assumed the possibility of normal faults down-stepping to the basin, being conduits for vertical hydrocarbon migration from the Kais carrier beds into the younger reservoirs (Figure �). Conceptually the Pliocene carbonate build-up play type was considered a good potential reservoir to trap such vertically migrated hydrocarbons.

REFERENCES

- Pieters P.E., Piagam C.J., Trail D.S., Dow D.B., Ratman N., dan Sukamto R., �98�, The Stratigraphy of Western Irian Jaya, Proceed. Indon. Petrol. Assoc.�2th Ann. Conv. pp 229-26�.

- Phoa R.S.K., Samuel L., �986, Problem of Source Rock Identification In The Salawati Basin, Irian Jaya, Proceed. Indon. Petrol. Assoc.�5th Ann. Conv. pp �06-�2�.

- Djumhana N., Syarief A.M., �990, Pliocene Carbonate Build-Ups A New Play in the Salawati Basin, Proceed. PIT XIX IAGI, Bandung, pp ��9-��5.

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When applying a community program, we not only need a good program, but also serious commitment and good intention. Involving all the company’s components is an important aspect in empowering the local community.

To synchronize this commitment and good intentions in order to implement the Community Development program effectively, PT Medco E&P Indonesia has created different management steps, such as surveying, planning, grouping and organizing, socializing, implementation, supervision, evaluation and auditing. This effort to support community work and to empower the local community is also based on the principles of community engagement and community awareness, as well as on an organized management process for planning and implementation.

PT Medco E&P Indonesia continuously evaluates its programs from a scientific perspective. The Multi-Stakeholder Engagement (MSE) approach is a model implemented through a case study of �8 villages in Musi Rawas, South Sumatra province in 2008.

Such a study in one of our working areas is another expression of our Corporate Social Responsibility (CSR) program, which until now has been perceived as a one-way contribution from Company to other stakeholders, such as to the community and government. This model is a solution to obtaining mutual benefits both for stakeholders and for program implementers, establishing a means of communication to facilitate the stakeholders’ understanding of their role in the program in the context of area development, as well as facilitating social license acquisition.

Becoming Part of Education ImprovementBy paying attention to education, the

company is involved in solving a human resources shortfall. To support students continuing their study at a higher level, the company provides scholarships for Junior High School graduation students in Musi Banyuasin, Musi Rawas and Lahat Regency in South Sumatra Province and Aceh Timur in Aceh Province. Some of these students have been granted scholarships to continue their study at Pesantren Pertanian Darul Fallah in Bogor (High School level).

Four scholarship students graduated

from Pesantren Pertanian Darul Fallah and continued their studies at the Agricultural Institute in Bogor through the PMDK program. They are Benny Kapri, majoring in Informatics, Poniman and Joko Trinuryono, majoring in Technology & Management of Livestock, and Ferri Afriandika, majoring in Ecotourism.

Other good examples are Desi Susanti and Ayenita. Desi comes from Musi Banyuasin Regency and Ayenita comes from Muare Enim Regency. They were given a scholarship to study at Pesantren Pertanian Darul Fallah and also became became participants in a student exchange program, YES (Youth Exchange & Study) Program 2007 and 2009. As part of the Indonesian cultural delegation, they had the opportunity to live in the USA.

We are not only concerned about students, but also teachers. In cooperation with the

Titian Foundation, in 2008 we organized a teacher quality improvement training in company working areas. The training content includes psychology, sociology and pedagogy. The aim of this training is to improve teacher competency, so that teachers can deliver lessons to their students more effectively. In addition, the teachers are trained using the PAIKEM method (teaching actively, innovatively, communicatively, effectively and pleasantly). We have trained about �52 elementary school teachers from Pelalawan and Indragiri Hulu Regency in Riau Province, Musi Rawas, Muara Enim and Lahat Regency in South Sumatra Province, Tarakan in East Kalimantan Province and East Aceh in Aceh Province.

Besides focusing on developing the quality of human resources, we also participated in constructing and renovating a school building, language laboratory and teachers’ office residences. Moreover, we were innovative in our community development program: we launched “Bus Pintar Medco” in Musi Banyuasin Regency, South Sumatra Province on June 29, 2009. The bus is fully equipped with multimedia instruments, such as notebooks and internet. The purpose of the bus is to serve students and teachers in remote areas in Musi Banyuasin Regency.

Healthy Life AwarenessWhen PT Medco E&P Indonesia determined that community health was a community development target, it realized that appraisal was not only limited to medical aspects, but also that local customs and culture needed to be taken into account. In order to improve health awareness, we have instigated programs to maintain a clean environment.

Medicinal treatment and circumcision programs for large groups of people form a routine part of PT Medco E&P Indonesia’s community development. This acts as a

PT MEDCO E&P INDONESIACOMMUNITY DEVELOPMENT PROgRAM “EMPOWERINg LOCAL POTENTIAL”

ResponsibilityCorporate Social

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bridge for community awareness between religion and the willingness to lead a healthy life. Other community development programs include building a Puskesmas (health clinic) and training school health cadres for elementary students.

Water treatment is done at a clean water processor installation, the water sourced from Musi river. We have provided this installation to fulfill community needs in Sekayu District, Musi Banyuasin Regency.

Renewable EnergyWithin the framework of exploiting renewable energy, PT Medco E&P Indonesia, in cooperation with Lions Club Wiesbaden, Germany and METI (Masyarakat Energi Terbarukan Indonesia), installed a drinking water process using solar energy with a capacity of 28 thousand liters a day for Pondok Pesantren Al Hikmah in Teluk Betung District, Banyuasin Regency, South Sumatra Province in 2006. The contribution is to help thousands of students in Pondok Pesantren Al Hikmah who have difficulties in getting access to clean water in the dry season.

In line with supporting our national energy policy, PT Medco E&P Indonesia has socialized biogas as an alternative energy source for households. Biogas is a simple technology using cow faeces processed into gas to replace petroleum, which is more expensive and more difficult to obtain. A biogas pilot project has been completed in Kampar Blok, Riau Province and Rimau Block, South Sumatra Province.

The success of simple biogas technology is not only that it provides a solution to energy, environment and socio-economic community problems in Desa Pematang Tinggi, Kerumutan District, Pelalawan Regency, Riau Province, but also it enabled Pelalawan Regency, representing Riau Province, to win the 2008 Pekan Pos Pelayanan Teknologi Desa (Posyantekdes) Nasional. The local government of Riau Province expanded the implementation of biogas technology to Indragiri Hulu Regency using the local government budget.

Local EnterprisesRegarding the economy, the rules of

the market place must be considered if we want to increase added value. In the environment of the company working areas, the potential for non-oil and gas natural resources is promising. However, the local communities still need to improve their skills in product marketing and sales. As part of its community development formula, PT Medco E&P Indonesia transfers knowledge and technology to individual households or community groups so that they can take advantage of the natural resources.

The process of transferring knowledge is very important, since oil and gas is

a non- renewable product. Because of that, when a working area becomes unproductive, the local community needs to be economically prepared. To anticipate the above, PT Medco E&P Indonesia also has a responsibility to empower the local community.

The community surrounding the company’s working area makes its living from farming, plantations, animal breeding and product processing by exploiting non-oil and gas natural resources. Since product knowledge is not a new issue for them, the company provides other relevant support through training, apprenticing and monitoring, as well as providing tools and seeds.

Several farmers have been sent to attend farming training programs, such as on cow fattening. They take full advantage of such training since they know it will lead to improved knowledge, performance, and therefore to a higher income.

Related to improving community income and expanding opportunities for employment, PT Medco E&P Indonesia provides training which is integrated with our “go green” program, such as an organic system for agriculture and cultivation of seedlings for re-vegetation programs.

The system of organic rice intensification (SRI) was initiated in May 2009 on an organic agriculture farm of �5 hectares, which belongs to farmers from the surrounding company areas in Suka Makmur Village, Musi Rawas Regency, South Sumatra Province.

To establish organic SRI, PT Medco E&P Indonesia introduced various phases involving the community ranging from

land identification and preparation and processing organic fertilizer to implementing a development program. We continue to assist farmers and monitor these activities through workshops and training in the field.

PT Medco E&P Indonesia has developed an integrated re-vegetation program with the aim of improving the income of the community. We provided training for farmers in the company’s surrounding areas on the cultivation of seedlings in order that the farmers can supply seedlings for the company’s re-vegetation needs. The training was attended by �2 farmers from Mulyohardjo Village, Musi Rawas Regency in South Sumatra Province.

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InterviewProfile

How is your working experience until you reached

this position?I started my career as a wellsite geologist who worked in field,

and later I was promoted to become an operation geologist. Then, I worked as an interpreter (especially in basin modeling/geochem) for various oil and gas companies (ie. Hudbya/Lasmo Oil, Maersk Oil and Amerada Hess), and was promoted to hold the post of Chief Geologist in Premier Oil, Exploration Manager in Mitra Energy, and now I am the Sr. Exploration Advisor in Talisman (Asia) Ltd.

Is your family also working in oil and gas sector?No, my father worked in the Navy as a submarine captain of RI Nanggala and

his last post was Adpel and Director Deputy of Sea Communications.

where did you get your knowledge so that you can

have this marvellous career?My career progress is the result of trainings, both in-house and

external, given by oil companies where I have worked in, and supported by government programs such as ‘transfer of technology’ from expatriate to nationals. My working experience both in Indonesia and overseas such UK and Thailand, has enhanced my knowledge in petroleum system.

PROFILE

Mr. Chandra Daud Tiranda

Place and Date of BirthSurabaya/April 19th, 1963

Educational BackgroundBachelor of Geology – University of Kansas, Lawrence, USA

Working Experience20+ years experience in the oil and gas industry including:- Sr. Geologist in Lasmo Oil/Maersk

Oil/Amerada Hess- Chief Geologist in Premier Oil- Exploration Manager in Mitra

Energy (Sibaru) Ltd.- Sr. Exploration Advisor in Talisman

(Asia) Ltd.

Organizational Background IPA, IAGI, AAPG

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what is your philosophy in running your career?“Do your best, and God’ll do the rest”. I always try to do my best at work,

enjoy the work, and always learning.

How big is the effect of your educational background to

your career? Moderately significant, but my educational background is only

a gate to my career. The rest is on how we socialize and apply the knowledge that we have learnt from our job and daily life.

when you were engaged in the field, what was your post at

that time?My post was as a Junior Geologist but assigned as a wellsite geologist in the

field.

what is the hardest situation that you met in your life?Life itself is tough and challenging, but we have to deal with it. The more

challenging the job, the better.

what is your future obsession, and what do you do to gain it?My obsession is pretty much the same with other explorationists,

which is to find giant oil/gas discoveries in blocks I’m working in. I keep on working to find this giant field, and I believe it’s somewhere in Makassar Strait and Eastern Indonesia, we’ll see.

Could you tell us how were you falling in love with this oil and

gas sector at the beginning?When I was in high school (Newbury Park High School, California), I always

involved in outdoor activities (cross country running, hiking and off-road), and after I graduated from high school, I found out that geology could accomodate my hobby. Nowadays, geologists don’t go out much, everything is computerized, but I still enjoy the petroleum system evaluation to find new economical prospects to drill.

what makes you devoted to this job?This job is very challenging, and also our duty to find new hydrocarbon

resources to accomodate the country’s shortages in oil and gas.

what’s the most troublesome situation you have ever

encountered in this job?Drilled dry holes. It’s one of the risk being a geologist, but we drilled

some successful wells too.

Are you satisfy with what you have reached now?Never satisfy, we can always do more in oil and gas exploration

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7-8 20092nd ConferenCe on Applied GeophysiCs, Venue: Beijing, China. organizer: China Geophysics, contact Jianwei Ma.

8-13 200934th AnnUAl ConVention And eXhiBitionAnd GeophysiCs edUCAtion seMinAr“eMpoWerinG GeophysisCs edUCAtion

toWArd GloBAl ChAnGes erA”Venue:Jogjakarta Indonesiaorganizer:HAGI or Indonesian Association of Geophysics, www.hagi.or.id

03-04 2009 indonesiA lpG World ConferenCe. Venue: Intercontinental Jakarta Midplaza Hotel, Jakarta. organizer: Asia Business Forum (Singapore) Pte LtdStart.

04-06 2009 the 2009 spe AsiA pACifiC oil & GAs ConferenCe And eXhiBition (ApoGCe). Venue: Jakarta Convention Centre, Jakarta, Indonesia. Theme: ““Leading the Energy Challenges with Care and Responsibility”. organizer: SPE.

16-19 2009 hedBerG reseArCh ConferenCe, “GeoloGiCAl CArBon seqUestrAtion: prediCtion And VerifiCAtion.” Venue: Vancouver, Canada. organizer: AAPG/SEG/SPE.

23-27 2009sUMMer reseArCh Workshop, “C02 seqUestrAtion GeophysiCs,” Venue: Banff, Canada. organizer: SEG.

24-28 2009 11th internAtionAl ConGress of the BrAziliAn GeophysiCAl soCiety, “seeinG deeper: A GeophysiCAl ChAllenGe,“ Venue: Salvador, Bahia, Brazil . organizer: Brazilian Geophysical Society.

26-27 2009Joint Workshop: 4-d seisMiC, “reserVoir MonitorinG, Model UpdAtinG, And MAnAGeMent,” Venue: Galveston, U.S. organizer: SPE, AAPG, SEG.

AUgUST

14-17 2009 the 7th internAtionAl oil And GAs eXplorAtion, prodUCtion And refininG eXhiBition. Venue: Jakarta International Expo, Kemayoran. organizer: Allworld Exhibitions / PT. Pamerindo Buana Abadi.

1-3 2009 AApG/seG West CoAst stUdent eXpo. Venue: Northridge, U.S. organizer: AAPG/SEG West Coast Student Expo.

12-14 2009the 9th seGJ internAtionAl syMposiUM, “iMAGinG And interpretAtion.” Venue: Sappora, Japan. organizer: SEG Japan.

13-14 2009 the 38th iAGi AnnUAl ConVention & eXhiBition. Venue: Semarang, Indonesia. organizer: IAGI (Indonesian Association ofGeologists)

25-30 2009seG internAtionAl eXposition And 79th AnnUAl MeetinG. Venue: Houston, Texas, U.S.organizer: SEG Meetings Department.

7-9 2009. internAtionAl petroleUM teChnoloGy ConferenCe (iptC), “World enerGy ChAllenGes: endUrAnCe And CoMMitMent.” Venue: Doha, Qatar. organizer: International Petroleum Technology Conference (IPTC) , www.iptcnet.org

OCTOBER

NOVEMBER

DECEMBER

of EventCalendar

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from MigasNews

MIgAS Announcement for The Tender of Direct Proposal Second Round 2008

Government has announced ��(eleven) companies who win the Direct Proposal in Indonesian Petroleum Bidding Second Round 2008. According to the Bidding Team, those companies are eligible to win the bidding round on �� (eleven) work area. The criteria used in this direct 2nd bidding round 2008 referred to the decree of Ministry of Energy and Mineral Resources No. 0�5/2008.

G

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Directorate General Oil and Gas has awarded oil and gas exploration rights on �2 blocks to several

international and local companies on �0 April 2009. The winning bidders for the �� oil and gas blocks which are part of �5 blocks offered directly on the second round in 2008 are PT Realto Energi Nusantara and PT Prosys Oil $ Gas International consortium (South Block A), PT Nana Yamano Technik (Block East Pamai), Orchard Energy Pte Ltd and PT Bayu Enegi Lestari consortium (Block West Belida), Australian Worldwide Exploration Ltd (Block Terumbu) and PT Bama Bumi Sentosa and PT Toba Sejahtera consortium (Block South East Madura).

Others include PT Archipelago Resources (Block Pasir), Hess (Indonesia South Sesulu) Ltd (Block South Sesulu), Niko Resources (overseas IX) Ltd and Biak Petroleum LLC consortium (Block Kofiau), Komod Energy LLC, Marathon Indonesia Ventures Ltd and Indonesia Kumawa Energy Ltd consortium (Block Kumawa), Esso Exploration Interantional Ltd and Biak Petroleum LLC consortium (Block Cenderawasih) and Sarmi Papua Asia Oil Ltd (Block Northern Papua). Four blocks that are not yet won during the second round of bidding in 2008 are Block Penyu, Sokang, Senami Bahar and Sermata.

The director general of oil and gas of the ministry of energy and mineral resources, Evita Legowo, said the government would also receive directly US$2�.65 million in contract signing bonuses on the projects. The amount of fixed exploration commitments from the winning bidders for the �� blocks has reached US$�89.� million and the signing bonuses US$2�.65 million. Investment in the oil and gas sector in Indonesia will increase by US$�89 million after the signing of work contracts on �� oil and gas blocks on May 5.

Evita Legowo said the US$�89.� million investment commitment would be made for exploration activities for the first three years consisting of geological and geophysical studies worth US$�2.9 million, drilling of �� exploration wells worth US$���.�5 million, two-dimension seismic survey on a 5,892 square kilometer area US$25.2�2 million and three-dimesion seismic survey on a �,750 square kilometer area US$�7.5 million.

The government expects to bring into

state coffers at least US$56.5 million in signing bonuses from 2� new oil and gas blocks put on offer on Tuesday, said a senior official. The payment is the bonus paid by oil and gas contractors to the government when the companies secure rights to explore and develop the blocks.The bonuses go to the state even though later exploration activities may find some of the blocks are not viable economically.

Evita H. Legowo, director general for oil and gas, said that the minimum signing bonuses were different for each block, depending on their potential reserves. If the early survey found the indication that the blocks have big reserves,then government sets a higher minimum signing bonus.

THE ANNOUNCEMENT OF INDONESIAN PETROLEUM BIDDINg ROUND 2009Indonesia’s Directorate General of Oil and Gas (MIGAS www.migas-indonesia.com) launched the First Indonesia Petroleum Bidding Round of 2009 on � May 2009. For this round, a total of 2� blocks are being offered with �7 blocks under Regular Tender and seven blocks under Direct Proposal Tender.

PT. Patra Nusa Data on behalf of National Data Centre or Pusat Data dan Informasi (PUSDATIN) DESDM has prepared the Data Package of Oil and Gas Working Acreage Tender 2009 which was announced by the Government. The Government offered 2� oil and gas working acreages for the first period of 2009. The withdrawal was started on June �5th 2009 at Migas Building, Kuningan, Jakarta.

Director General of Oil and Gas, Evita H. Legowo, explained that the limit submission date for the offered oil and gas working acreages through direct proposal was October ��th 2009. Proposal document is addressed to the Secretariat of Oil and Gas Working Acreage Team, Up. Auction Team/Appraisal Team of Directorate General of Oil and Gas, Ministry of Energy and Mineral Resources, Plaza Centris Building, �st Floor Jl. H.R. Rasuna Said Kav. B-5, Jakarta Selatan �29�0.Phone: +62-2�-52689�0 (ext. ��5), Fax : 62-2�-526896�.

Evita stated the Government gave an opportunity to national and foreign companies to participate in this oil and gas working acreage proposal. Each company must follow the entire regulation and requirement poured in the auction document or direct proposal document. The first round of 2009 working acreage consists of �7 oil and gas working acreages, offered through regular tender and 7 oil and gas working acreages offered through direct proposal.

The �7th oil and gas working acreages offered through regular tender are Tomini Bay I Block (Tomini Bay), Tomini Bay II Block (Tomini Bay), Tomini Bay III Block (Tomini Bay), Tomini Bay IV Block (Tomini Bay), Tomini Bay V Block (Tomini Bay), Gorontalo Tomini I Block (Tomini Bay), Gorontalo Tomini II Block (Tomini Bay), North Bone Block (Bone Bay), Kolaka Lasusua Block (Bone Bay), Kabena Block (Bone Bay), Jampea Block (Bone Bay), Buton III Block (Buton Offshore), Menui Asera Block (South Sulawesi Offshore), Morowali Block (South Sulawesi Offshore), Sula I Block (Sula

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Offshore), Sula II Block (Sula Offshore), and Birds Head Block (West Papua Offshore).

While the working acreages for direct proposal are Kubu Block (Riau Mainland), N.E Ogan Komering Block (Lampung & South Sumatera Mainland), Offshore West Java Block (West Java Offshore), Blora Block (Central Java & East Java Mainland), North Makasar Strait Block (Makasar Strait), East Simenggaris Block (East Kalimantan Offshore/Mainland) and Digul Block (Papua Mainland). The blocks offered are as follows

Bid documents have been available from �5 June 2009. The bid deadline for direct proposal tenders is �0 July 2009 and for regular tenders is �� October 2009.

With the exception of the Lampung III block, all other blocks were from the Second Indonesia Petroleum Bidding Round 2008. Out of the �5 blocks offered under the second round in 2008, only �� blocks attracted bids. The reported total exploration commitments (first three years) and signature bonuses are USD �95.68 million and USD 2�.�5 million respectively.

On Tuesday, the government offered 2� oil and gas blocks; �7 blocks being offered under a regular tender and the remaining seven under a joint study mechanism. Blocks offered under the regular tender included: Tomini Bay I-V; Gorontalo Tomini I-II; North Bone; Kolaka Lasusua; Kabena; Jampea; Buton III; Menui Asera; Morowali; Sula I-II, and the Bird’s Head block. Blocks offered under the joint study mechanism included: Kubu; North East Ogan Komering, Offshore West Java; Blora; North Makassar strait, East Simenggaris; and the Digul block.

Minimum signing bonuses set by the government for each block ranges between $� million and $5 million. The Tomini Bay I-V blocks and those at Gorontalo Tomini I-II stand out as being among the most expensive blocks to acquire. Government has set the highest minimum signing bonus of $5 million on each of these blocks because of their potentially high reserves of oil or gas.

Evita said that government set the highest minimum signing bonus for these blocks, because the areas are very promising. We estimate the blocks contain huge reserves especially gas reserves. We do encourage all oil and gas companies to develop these

blocks, adding that this initial information was based on the government’s own initial survey.

Most of the blocks offered were located in the eastern part of Indonesia, meaning that oil and gas contractors must usually spend more on drilling costs. Average drilling costs for “wild cat” wells offshore eastern Indonesia can be up to between $�0 and $50 million, while in the western part of Indonesia the equivalent drilling cost per well is only between $7 and $8 million, oil and gas upstream director Edy Hermantoro said last month.

Evita said the government asked for a lower production split for the blocks located in eastern Indonesia, the split is 65 percent for the government and �5 percent for contractors. Normally the government takes 80 to 85 percent. She added that the lower split for the government was an incentive for oil and gas companies to operate in the more difficult conditions in eastern part of Indonesia.

Currently, there are �90 national and international oil and gas contractors operating in Indonesia.

As many as 5� are working in the production stage, which consist of �� contractors are still carrying out development planning, and the remaining �26 are still only in the exploration stage.

The government has been auctioning new oil and gas blocks, as part of its efforts to boost oil output amid a declining trend in oil production during the past five years. This year, the government has set an oil lifting target of 960,000 bpd. As of April, the realization of oil lifting was at 956,000 bpd, less than the initial target, Evita said.

For gas, the government has set a production target of 7.66 billion British Thermal Units of gas (Btu) per day, up from this year’s target of 7.5� Btu per day. It has set an oil and condensate output target of �.05 million barrels per day (bpd) for next year.

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Hobby

profile:name

Kukuh Hadianto

place, date of Birth Bandung, February 16th, 1970

hobbyOutdoor activity, biking

divisionThe Assesment and Development

of Exploitation Assesment and Evaluation Reserve Service Assesment of Geological

Development Sub Service

educationalS1 / Bachelor Geology ITB

( 1987 – 1994)

BackgroundS2/ Master of

Petroleum ITB graduated 200�

Working experience Petroleum Campus ITB

( 1995 – 2007 ) Pertamina Project

( 2002 – 2006 )Tiara Bumi Petroleum

( 2007 )BPMIGAS

( 2007 up to present )

organizational experience- Pramuka ITB

( 1982 – up to present )- IAGI & HAGI Jakarta- Head of BPMIGAS Cycling Community

- Bike to Work Community in Bandung and Jakarta

Inameta Journal had given the chance to visit BPMIGAS and met one of the management for

cycling community in BPMIGAS, Mr. Kukuh Hadianto, who holds the position of Head of BPMIGAS Cycling Community. This BPMIGAS Cycling Community was initiated by some employees who love biking then; they came up with an idea to establish an organization named BPMIGAS Cycling Community (BCC) concurrently with the �9th Earth Day, which was on April 22nd, 2009.

BPMIGAS Cycling Community (BCC), which only got �0 active members when it was established, has expanded its members into �0 active members, not forget to mention some of the employees who are not members yet participate in this organization. Here is the interview we had with Mr. Kukuh.

WHY BPMIgAS ESTABLISHED A BIKE COMMUNITY, WHICH IS BCC?• We establish this community since biking is good for health, free from pollution caused by both vehicles mufflers and fossil burning which cause the earth temperature rise; it also reduces the use of fuel.

WHAT IS THE MISSION OF BCC?• Maybe BCC is only a small step, yet we are very proud to have this organization since we have and will continue trying to reduce the pollution in this earth.

WHY WERE YOU INTERESTED IN BIKE TO WORK AND BECOMINg THE MANAgER OF BCC IN BPMIgAS?• I really love biking since I was on Junior High School until now. Actually, it is bike for fun, instead of bike to work, since we bike with happy feeling and without any burden. Thus, in BPMIGAS it is called as Bicycling Community instead of Bike to Work Community where employees can bike happily.

WHAT IS THE PHILOSOPHY OF YOUR LIFE?• Do every single thing with happy feeling, like biking, if we do it with pleasure then bike to work will give no burden to us.

SINCE WHEN DID YOU BIKE TO THE OFFICE?• I started to bike to the office since September 2008 in the beginning of the fasting month until now.

HOW IS YOUR BIKINg ACTIVITY TO THE OFFICE?• My house is only 8 km far from my office, so I bike �6 km back and forth to the office if I don’t do the domestic service or have meeting. Nevertheless, if I have domestic service, usually I bring my folding bike so I can bike on my spare time. I do even love to bike in rain because I can use the road freely since other vehicle will usually stop to take a shelter from rain.

WHERE HAVE YOU gONE WITH YOUR BIKE?• I lived in Bandung when I was a kid, and started to bike to other town since I was in Junior High School. Some places that I had visited are Tangkuban Perahu, and Padalarang. When I was in High School on �986, I also went to Sumedang. I even biked from Bandung to Pangandaran on �990.

DID YOU HAVE ANY INTERESTINg MOMENT WHEN YOU BIKED?• Everything was interesting, yet the most interesting moment was when I went to

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Tangkuban Perahu on �98� when I was on my senior year in Junior High School. At that time, I helped Pramuka ITB/ ITB Boy scout in preparing Sholat Iedul Adha then we went straight to Tangkuban Perahu without any preparation on �0.00 a.m. At that time, few people would go there, but we biked to the top. Since the place was very steep, to support our back wheel brake, we use our shoes as a break to hold the spin of the back wheel so when we reached our house at 07.00 p.m, our sole was thinning.

WHAT ELSE DO YOU HAVE WHEN YOU WERE IN SCHOOL?• Since I was an active member of Pramuka ITB / ITB Boy scout, I usually biked to camp and brought sufficient clothes and food to spend nights at the camp.

WHERE DID YOU SPEND NIgHTS WHEN YOU BIKED?• Since I biked with Pramuka ITB/ ITB Boy scout, usually when we were heading for outside the city, we called the nearest Scout so that we could spend night freely. Especially when we went to Batu Hiu, we

could spend nights freely in the fishermen housing sample built by ITB.

HOW IS THE BCC ACTIVITY IN BPMIgAS ? • The BCC activities BPMIGAS are so fun. We usually visit the tourism places, which have the culinary tour, and other Fun bike activities.

WHAT ABOUT THE CYCLINg COMMUNITY IN MIgAS? • In Migas, they have cycling community called Petro bikers whose members are KKS employees who love to bike and once again, not Bike to Work. They usually hold cross-country biking every month.

WHAT DO YOU HAVE TO BRIDgE THE COMMUNICATION AMONg MEMBERS IN BCC?• We have mailing list for BCC as a medium for communication and sharing among members and the management.

WHAT IS YOUR HOPE FOR THE EMPLOYEES IN BPMIgAS?• I hope the employees can use public transportation or even bicycle to reduce the fuel use.• Parking lot to be available in not only the office complex but also public area.

tips of sAfety ridinGBy BPMIGAS Cycling Community

�. Wear helmet and bright-colored clothes – In rainy season wear rain coat that will give you comfort, balance, and control while biking.

2. Obey the traffic sign and regulation – If you don’t follow the regulation, how can you ask others to obey the regulation?

�. Don’t bike in the opponent side of the road – Other vehicle will not notice the bikers who take the wrong track.

�. Do not wear headphone (either from walkman or headphone) – Based on research, the shut ears may reduce bikers’ awareness of the surrounding.

5. Prepare your hands on the brakes – You may not stop suddenly when you push the brake with one hand. Keep distance between bikers, always take a safe braking space as the break will lose its eficiency when wet.

6. Mind the road on your back and side – learn how to be aware with the back and side of the road without losing your steadiness

7. Do not pass from the left side – Other vehicle may not be aware of bike which takes the left side of the road.

8. Do not pass the border line – When you intend to pass other vehicle, make sure that you don’t pass the border line, especially in traffic congestion.

9. Ignite the bike light in the night – besides helping you in seeing the road track and condition, it will also help other vehicle to spot you. Also add light or at least reflector at the back of your bicycle.

�0. Use you hands to give sign – Use your hand to give sign to other vehicle where you are heading to. It may not written regulation for bikers, yet it is very important for your own safety.

��. Take a good care of the condition of your bike – Do the daily care so that you can ride your bicycle safely and comfortably. Change the brake and tire periodically. Taking care a bicycle is easy, you can learn to do it by yourself.

from left to rightDicky Rachmadi, Alam Mulyawan, Avicenia, Kukuh Hadianto, yarra Sutadiwiria, Drianto Sudarmawan, Bayu Aditya, yus yusriana, Danang.

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Inameta Journal_September_2009 _Vol_VIII �7

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