Wood Mackenzie: comments on Repsol's KBD-2X discovery

"At 2 trillion ft³, the KBD-2X discovery is the largest discovery in Indonesia since ExxonMobil discovered the Cepu oilfield in 2001. It would also surpass the largest discovery in Asia Pacific in 2018, the Dorado oil discovery in Australia. In fact, KBD-2X ranks in the top five discoveries globally over the last 12 months. We also believe there's potential for the volume estimate to increase as appraisal of the find progresses.

"Repsol and Indonesia are likely to want to fast-track the development of the discovery. We think 2024/2025 is a realistic estimate for first production, and with a resource estimate of 2 trillion ft³, the field could produce around 300 million ft³/d for around 15 years.

"Indonesia has recently ramped up efforts to rejuvenate its oil and gas sector by reducing bureaucracy, revising fiscal terms, and opening up the level of data available. This discovery, while not a direct result of those efforts, is well timed. It'll be up to Indonesia to capitalise on the buzz generated by this discovery to attract further investment and stimulate more activity.

In the near- to medium- term, this discovery will partially offset declining output from other domestic fields, and reduce the reliance on LNG. Longer term, Indonesia needs to continue to attract explorers, particularly in the more difficult but potentially more prospective Eastern Indonesia basins."

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