VICO Indonesia's oil and gas production is centered in the East Kalimantan basin, with wells at the Badak, Nilam, Semberah and Mutiara Fields.

Badak, the first gas field discovered in East Kalimantan, is situated close to the mouth of the Mahakam River. The gas in the Badak Field is held in a series of channel sand reservoirs distributed through a vertical interval of several thousand feet over various areas of the structure. Development required the drilling of many wells to define the volume and hydrocarbon potential of each reservoir. Approximately 200 wells have been drilled in the Badak Field. In exploring its contract area further, VICO discovered the Nilam Field, another multiple reservoir field, just south of Badak.

As the fields mature, reservoir management is becoming more complex. Presently we are facing the challenge of finding gas/oil from smaller sized and lower permeability reservoirs, requiring the application of new technology and programs, such as horizontal drilling. Gas received and blended at Badak is delivered 56 kilometers to the North, across the equator, through large diameter high pressure pipelines, to the Bontang LNG Plant and Kaltim Industrial Estate, which consists of seven domestic fertilizer and petrochemical plants. Oil and condensate are delivered to the Unocal operated Santan Terminal. Badak today is far removed from the isolated stretch of swamp and jungle that greeted VICO's first explorers back in 1969. Both the local population and VICO employees benefit from a modern infrastructure and a host of job opportunities.


Nilam No.1, the discovery well, was spud in July 1974 and found the giant Nilam Field. There are almost 1,000 separate reservoirs and approximately 167 layers making Nilam a very complex field. The Nilam Field produces approximate 30% of VICO's gas production from 218 wells in Nilam and 8 wells in Lampake, a new field delineated in 2002. The Mahakam River distributary channels snake through the Nilam Field so a number of wells are only accessible by boat.
pic_au_oh_fdtr03.jpg (12955 bytes) SEMBERAH
Semberah Field was discovered in January 1974 and is located in the northern most area of the PSC. Semberah also contains multiple oil and gas reservoirs, with production from depths of 1000 feet to 10,000 feet. To date 74 wells have been drilled. The peak oil rate was 14,700 BOPD in 1995 and gas rate at 180 MMSCFD in 2000.
pic_au_oh_fdtr04.jpg (11273 bytes) MUTIARA
Mutiara Asset manages three fields, which are located in the Southern portion of the Sanga-Sanga Production Sharing Contract area. These fields are Mutiara, Beras and Pamaguan. Mutiara, which is the biggest of the three fields, is located south of the Mahakam River just west of the small town Handil. The Beras Field, which holds VICO's largest oil reservoir, is located in the sourthern portion of the Mutiara Field. The Pamaguan Field, which was the first of the three fields to be discovered, is located north of the Mutiara Field on the banks of the Dondang River. To date 77 wells have been drilled in Mutiara and Beras, and 31 wells have been drilled in Pamaguan. Significant gas production increases in 1999 and in 2003 are the result of a thoughtful strategy to maximize field recovery and value by accelerating the depletion of reserves Currently Mutiara delivers approximately one third of VICO's gas production.

All production from VICO's four fields, along with gas from fields operated by Total and Unocal, is transported via the Pipeline Network System into VICO's Badak Central Facilities, the nerve center of East Kalimantan gas operations. In the modern control room in Badak Central, VICO engineers use computers and leading-edge technology to monitor quality and blending of the gas.

As the gas coordinator and operator of the East Kalimantan Pipeline Network System, VICO is responsible for over 1000 km of pipelines, ranging in diameter from 6" to 42", and for transporting almost 4 BCF gas/day.
pic_au_oh_fdtr05.jpg (10828 bytes) BONTANG
Bontang LNG Plant The Bontang Natural Gas Liquefaction Plant is owned by the Indonesian Government and operated by PT. Badak NGL. VICO holds a 20% share of PT. Badak NGL and provides commercial and technical support to its activities.

With eight LNG trains and a production capacity in excess of 20 million tons per year, the Bontang LNG Plant is the largest plant in operation in the world. Five massive cryogenic tanks hold 3.3 million barrels of clear liquid chilled to minus 160 degrees Celsius, which reduces the gas to 1/600th of its original volume, making it economically transportable over great distances.

Specially designed refrigerated tankers, partially powered by LNG, transport as much as 135,000 cubic meters of LNG per voyage to buyers in Japan, South Korea, and Taiwan.

Adjacent to the facility, where once huddled a small fishing village, is the prosperous town of Bontang. Some 5,000 employees and their families live in the comfortable 3,000 hectare complex.

For both Indonesia and the local community, Bontang delivers real benefits and promises an ever better future.