Apexindo wins Madura onshore drilling project

JSX-listed drilling contractor PT Apexindo Pratama Duta said Friday it had won a US$2.7 million drilling contract from JOB Pertamina Medco Madura Pty to carry out onshore drilling program at the latter?s block on Madura Island, East Java Province.

Apexindo, however, did not say when the Sebaya #2 delineation drilling program would be commenced. It said the drilling would use its Rig No. 14.

Four wells in the Madura Block, namely Sebaya, Karasan, Tambuku and Telaga have been drilled by the joint venture of the block.

According to Australian oil and gas firm CityView Limited, a co-venture in the block, the central fault block of the Sebaya prospect is estimated to contain about 155 BCF of recoverable gas.

CityView also said Medco had planned to drill two delineation wells on the prospect but the second well is subject to the success of Sebaya #2.

Meanwhile, Medco and state-owned electricity firm PT Perusahaan Listrik Negara have signed a memorandum of understanding (MOU) for a 20 million cubic feet of gas supply from the block to the latter?s proposed power plant in the area starting 2006 for 15-year period.

An industry source told Petromindo.Com that Sebaya's delineation drilling program is a critical point for the development of Madura block.

State oil and gas firm PT Pertamina has a 35 percent interest in the Madura block, while CityView, Medco and Falcon Oil Pte. Ltd hold 16.25 percent, 24.75 percent and 24 percent, respectively. (Robert)