Repsol plans to drill a delineation well at Kaliberau Dalam Well 2X in Sakakemang Block in South Sumatra this year to confirm the reserve and commercialize it. (Antara Photo/Muhammad Adimaja)

Jakarta. The discovery of a large gas reserve in South Sumatra has provided Indonesia with a much-needed boost as the country tries to revive its oil and gas industry.

The reserve, which contains an estimated 2 trillion standard cubic feet of gas, was found after successful drilling by Spanish oil and gas giant Repsol at Kaliberau Dalam Well 2X (KBD2X) in the Sakakemang Block in South Sumatra.

"In the 2018-2019 period, this is the fourth-largest discovery in the world after Calypso 1 in Cyprus, Obskaya Sevemaya 1 and 1-STAT-010A-SPS in Brazil," Dwi Soetjipto, head of oil and gas regulator SKK Migas, said in Jakarta on Thursday.

KBD2X is located about 60 kilometers from the enormous Suban gas field in South Sumatra. Repsol began drilling on Aug. 20 last year, targeting fractured basement reservoirs, which refer to a very hard rock layer – often among the oldest rock formations in the world – that trapped oil in porous sediment layers over about a million years of seismic activity.

Repsol finally reached its objective at a measured depth of 2,430 meters in early February this year.

Production tests have been underway since Feb. 10 and the results have so far shown that the well has a high flow rate.

Dwi expressed hope that this significant find and the potential it holds will lead to more discoveries.

"This discovery will certainly open the possibility for new explorations targeting more fractured basement reservoirs stretching across south and central Sumatra," he said.

This year, Repsol plans to drill a delineation well at KBD2X to confirm the reserve and commercialize its discovery to meet growing domestic energy demand.

Repsol and SKK Migas signed an agreement on Monday to continue their exploration in the South Sakakemang working area. The Spanish company is expected to expand its operations in Indonesia in the long term.