Indonesian Operations

Regional Map

Overview

Criterium’s Indonesian portfolio is currently comprised of a 42.5% non-operated interest in the long-life Bulu PSC and will include a 100% operated interest in the producing Tungkal and West Salawati PSCs upon completion of the acquisition of Mont D'Or Petroleum Ltd. expected in July 2023. This transaction will establish the company as a reputable operator in Indonesia and Southeast Asia. The Corporation intends to deliver a balanced portfolio through high cash flow later life assets, near term growth assets and longer life development assets to maximize shareholder returns while managing its balance sheet.

Indonesian PSCs

The Tungkal PSC has a long history dating back to the 1930's initially with the Dutch National Company, but it wasn't until 1997 that the Mengoepeh (MGH) field was discovered and the PSC was awarded to Asamera Oil. The PSC covers an area of 2,285 km2 (565,000 acres) in onshore South Sumatra and currently produces 1,030 bbl/d from the Talang Akar formation and contains 4.6 MMbbl 2P Reserves as of YE22.

The success of Mengoepeh-1 led to production commencing in 2004 reaching a peak rate of 2,500 bbl/d. As of December 31, 2022, the Mengoepeh field has produced 4.7 MMbbl, an estimated 6% recovery factor. More recently the Pematang Lantih (PLT) field was discovered and first production initiated in 2015, reaching a peak rate of 2,000 bbl/d by June 2018. As of December 31, 2022 the field had produced 1.8 MMbbl, representing an estimated 10% recovery factor. Both fields produce a light crude which receive a premium price to Brent.

The low recovery factors present an opportunity that Criterium intends to unlock by focusing its efforts on workovers of bypassed pay, infill drilling, and secondary recovery techniques. In addition the Tungkal PSC contains 20 bcf of 2C contingent gas resources that can be monetized with a proper plan of development as well as a P50 prospective resource of 27 MMboe near existing infrastructure. The PSC is under a gross split agreement that expires in 2042, giving Criterium ample running room for development and growth.
Source: Evaluation Report prepared by ERC Equipoise Ltd ("ERCE") for the hydrocarbon Reserves and certain Contingent Resources and Prospective Resources held by Mont D'Or Petroleum within the Tungkal PSC and West Salawati PSC, onshore Indonesia, as of December 31, 2022
Mengoepeh Pad 1 & Central Processing Facility
Tungkal PSC Basemap
The West Salawati PSC is located in West Papua covering an area of 970 km2 (240,000 acres) and is a cost recovery PSC that expires in 2033. The PSC contains the Balladewa-A ("BLL-A") oil field which currently produces approximately 20 bbl/d of oil from one well.

The BLL-A1 well was drilled in 2015 and encountered 67m of net oil pay in the Kais reef. It was brought onto production in 2018 at an initial rate of 350 bbl/d of oil and water cut of 70-80%. The field has an estimated recovery factor of 1%. 

In addition to the BLL-A1 field, prospectivity within the block is mature with analog structures identified on 3D seismic data ("Balladewa Cluster") and several leads mapped on 2D seismic, most notably Lead 15 and Lead 3X located in the shallow waters. 

Criterium intends to perform a workover in BLL-A1 to limit water production and will seek strategic partners to derisk future prospects.
Source: Evaluation Report prepared by ERC Equipoise Ltd ("ERCE") for the hydrocarbon Reserves and certain Contingent Resources and Prospective Resources held by Mont D'Or Petroleum within the Tungkal PSC and West Salawati PSC, onshore Indonesia, as of December 31, 2022
Constructed, drill ready pads
West Salawati PSC Basemap
Criterium owns a 42.5% working interest in the Bulu PSC which contains the faully appraised Lengo Gas Field. Joint Venture Partners include: Kris Energy (42.5% and Operator), PT Energindo (10%), and PT Wisma (5%).

The Lengo gas field was discovered in 2008 by the Lengo-1 well and appraised in 2013 by the Lengo-2 well. Both wells tested commercial quantities of gas from the Kujung Formation and identified a gas-water contact consistant with indications on 3D seismic. Lengo has independently been assessed to contain 2C resource of 359 bcf (134 net to Criterium).

Criterium is in collaboration with the Bulu PSC JV partners to establish a cost effective plan of development. Key drivers for Criterium and the JV are to determine efficient methods to remove the inerts, the Lengo gas contains 13% CO2 and 20% N2, and minimize the environmental footprint. ​

A plan of development was approved by the Indonesian regulator, SKK MIGAS, in 2014 and the project milestone is the signing of a Gas Sales Agreement which will secure gas offtake for a long term period at a stable price anticipated to be greater than $6/MMbtu. A Heads of Agreement was signed in August 2022 between the Bulu PSC Joint Venture and a large industrial customer in the East Java industrial hub.
Source: Evaluation Report prepared by Netherland, Sewell & Associates, Inc. ("NSAI") for the hydrocarbon Contingent Resources in the Lengo Field, Bulu Block, offshore Indonesia, as of December 31, 2022
Top Reservoir Depth Structure Map
Bulu PSC Basemap
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