UK independent Premier Oil has identified a very large wet gas exploration opportunity in the Andaman Sea off northern Indonesia near to a mothballed LNG train at the Arun facility.
The company said it plans to start exploration drilling in 2022 in the Andaman II and South Andaman blocks, each of which contain prospective resources of 6 trillion cubic feet of gas and 200 million barrels of condensate.
Two clusters within the Andaman II contract - called Timpan and Sangar - underpin a proposed field development whereby a floating production, storage and offloading vessel would receive the feedstock and the gas would be piped to the Arun LNG plant 320 kilometres away.
Exploration drilling is planned in 2022 on both blocks.
Premier also owns an interest in the Andaman I licence where additional prospectivity has been identified.
Dean Griffin, Premier's head of exploration, said the Andaman was "the holy grail of exploration - low-risk and significant value".
"The key point here is that we are also in a commercially advantaged position for the Arun LNG facility just onshore where there's a mothballed LNG train and associated facilities," said Griffin.
"There's also a gas export line in the local market. This enhances our ability to accelerate first gas and monetize this exciting opportunity."
Andaman II, he added, is a "play opening programme".
The Timpan and Sangar clusters are large four-way dip-closed structures with strong AVO responses and flat spots that conform to structure.
Premier has a 40% operated interest in Andaman II and is partnered by Mubadala Petroleum (30%) and BP (30%).
Partners in South Andaman are Mubadala (80%) and Premier (20%).