| || |
| || The exploration activities had been triggered three years earlier when Texas oilman Roy M.Huffington and Virginia businessman General Arch Sproul signed a Production Sharing Contract with Pertamina covering 631,000 hectares of the Mahakam River delta, long thought to be rich in oil reserves. With the backing of joint venture partners Ultramar Indonesia Limited, Union Texas East Kalimantan Limited and Universe Tankships, Inc., they commenced their search and in February 1972 discovered the giant Badak Field, establishing one of the most important milestones in the history of energy in Indonesia. || |
| || |
| || Badak gas reserves were located in the middle of the jungles of the Eastern part of Kalimantan, with the nearest market more than a thousand miles away. But Huffington and Sproul had a vision which was shared by both Mobil Oil Company (who had discovered a large gas field in Arun) and Pertamina President Director Dr. Ibnu Sutowo: to liquefy the natural gas and ship the resultant LNG in specially designed tankers to Japan, South Korea, and Taiwan. || |
| || Pertamina, with the support of VICO and its partners, executed a 20-year LNG sales contract in December 1973 with five Japanese utility companies and a Japanese steel company, and constructed a liquefaction plant at Bontang on the coast of East Kalimantan. |
The first shipment of LNG produced from Badak gas sailed to Japan in August 1977, only 5.5 years after discovery; a world record. Bontang had produced the first drop of commercially produced liquefied natural gas in the history of Indonesia.
Since its initial discovery in 1972, VICO Indonesia has drilled more than 600 wells and discovered gas volumes totaling 14 trillion cubic feet, as well as more than a billion barrels of liquid. The oil and gas reserves are located in the giant Badak and Nilam Fields, the Mutiara and Semberah Fields, and in the smaller Pamaguan, Beras, and Lampake Fields.
Peak production was reached in 1994 at more than 1500 MMSCFD gas and more than 53,000 BPD oil and condensate.
Thirty three years after the discovery of Badak 1 gas well, VICO Indonesia remains one of the main producers in the country. VICO Indonesia is dedicated to ensuring that its activities for the development and production of oil and natural gas are conducted in a safe and reliable manner to maximize value, both to Indonesia and VICO's joint venture partners, as well as to minimize their impact on the environment.
VICO currently produces 700 MMSCFD gas and 20 MBPD oil and condensate.
The last decade of the oil and gas industry has seen merger and take-over activity that has affected VICO ownership. The current joint venture partners of Sanga-Sanga PSC are: BP p.l.c. via "BP East Kalimantan Ltd."; Eni SpA via "LASMO Sanga Sanga Limited"; CPC, via Opicoil Houston, Inc.; and Universe Gas and Oil Company, Inc.