BUMI to renew exploration permit for oil block in Yemen

PT Bumi Resources Tbk (BUMI) is proposing for the extension of exploration rights for the development of an oil block in Yemen, which is operated by the company?s subsidiary Gallo Oil (Jersey) Ltd, Kontan reported on Monday.

In its report released on Thursday, BUMI said that it had proposed for the renewal of the exploration rights for Gallo Oil-R-2 block, which would expire in February, 2013. The company said that new permit would be needed because the company had already completed a general and seismic survey at the oil block.

BUMI said that Gallo Oil had detected gas with high pressure at Al Rizq well at the oil block. ?It indicates that the block gas potential gas resource for further development,? BUMI said in a statement filed to the Indonesian Stock Exchange (IDX).

In the statement, BUMI hoped that with the gas finding, the Yemen oil authority would agree to extend the exploration rights.

BUMI acquired the Yemen oil block from Long Haul Holdings in 2000. The company issued rights shares worth about Rp 9.31 trillion to partly finance the acquisition.(*)