Bengara-II PSC negotiations terminated

By Ruli Setiawan

San Francisco-based GeoPetro Resources Company announced that its subsidiary Kunlun Energy Ltd., acting in its capacity as operator of the Bengara-II PSC, has terminated negotiations with the Indonesian government for an extension of the PSC's term.

Consequently the PSC shall be relinquished and allowed to expire in accordance with its terms, it said in a statement.

The company said it is disappointed that Kunlun could not work out agreeable terms for an extension with the Indonesian government.

However, Kunlun's decision in this regard does provide the company with an opportunity to potentially re-acquire a participation in the same block under new PSC terms and with a renewed time period when the block comes out for public tender in 2013.

The company said it will evaluate its options in this regard.

Editing by Dadan Wijaksana