Coastal has inked a small field risk service contract covering the Kapal Banang and Meranti field cluster – collectively known as KBM – for which it will become operator with 100% equity although it is currently finalised a deal to sign up a local partner with between 30% and 40% equity.
Once the deal is finalised, the UK-listed firm is to provide upfront capital costs for development drilling and production of the KBM fields.
“First oil from the Kapal field is scheduled within one year followed by production from the Banang field a year later,” the company has indicated. “Coastal will develop the fields using Mobile Offshore Production Units (MOPUs) and Floating Storage and Offloading Tankers (FSOs) similar to the method used to develop its assets offshore Thailand.”
Seventeen wells will be drilled in total, with ten planned at Kapal, four at Banang and three at Meranti, Coastal has indicated. The fields are within 20 kilometers (12.5 miles) of each other in a water depth of 60 metres (200 ft). Main oil reservoirs are Miocene-aged sandstones in depths from 1,158 – 2,378 m (3,800 – 7,800 ft).