EIA: Exploration Drilling Program at Karama Block

Statoil Indonesia Karama As (Statoil) and partner Pertamina plan to undertake an exploration drilling program of three deep-water exploration wells at Karama Block in the Makassar Strait, offshore West Sulawesi Province in 2011. The purpose of this project is to discover the oil or gas targets identified from interpretation of 3D seismic survey data.

The Karama Block is located in the Makassar Strait. The nearest land is around 12 km (7.5 miles) West of Mamuju Regency, West Sulawesi province. According to the Government Regulation No. 32 of 2004 regarding Regional Government, some of the activity locations in Karama Block are, administratively, under the authority of the West Sulawesi Province Government (4-12 miles) and most of the locations are under the Central Government authority (>12 miles).

The exploration block is consist of an area of approximately 4,287 km2 from north to south (Figure 1-1) in water depths ranging from 1,660-1,825 m. Drilling operations are currently planned to begin in early January and February 2011 for the first and second wells and in July 2011 for the third well.

An Environmental Impact Assessment (EIA or AMDAL) is not required under Indonesian Regulation for exploration drilling activities. This IA is being completed in line with Statoil’s corporate requirements and covers only the exploration drilling activities for the Karama Block. Currently, the exact locations of the three exploration wells have not yet been determined; final locations of the wells will be determined based on the interpretation of data gathered during the 3D seismic survey of the area (which is currently in progress).