CITIC Resources Announces Results of Indonesian Gas Discovery

CITIC Resources on Tuesday announced the evaluation results of the amounts of gas and condensate in the Lofin field located in the Seram Island Non-Bula block, Indonesia.   

Based on the evaluation report prepared by an independent petroleum consulting firm Sproule International, as of August 31, 2015, the amounts of contingent reserves and contingent resources of gas initially-in-place, recoverable gas and condensate in the Lofin field are estimated at 3,070Bcf, 2,020Bcf and 18.25MMbbls respectively, the company said.

“The remarkable discovery represents one of the company’s major milestones which has not only showed the prominent prospects of the Lofin field, but also opened up huge doors of opportunities for the company to tap into the gas exploration sector that helps it achieve sustainable growth,” CITIC stated. 

To unlock investment value of the oilfield, the company is taking steps to formulate development plans and the application to the government of Indonesia for renewal of the production sharing contract is under process. 

The Lofin field’s contingent reserves and contingent resources are evaluated according to the classifications and definitions promulgated by the Upstream Oil and Gas Executive Agency of Indonesia.  To-date, the estimates of contingent reserves and contingent resources are unrisked; meaning they have not been risked for the chance of development. 

CITIC Seram Energy, an indirect wholly-owned subsidiary of the Company, owns a 51 percent participating interest in the production sharing contract which grants the right to explore, develop and produce petroleum from the Seram Block until 2019.  CITIC Seram is the operator of the Seram block.