Capitalinc seeking partner to fund East Kangean block
Tuesday, April 28 2015 - 12:54 AM WIB
IDX-listed PT Capitalinc Investment Tbk. through its subsidiary Greenstar Asset Ltd (GSAL) is looking for partner(s) to fund exploration drilling at the East Kangean block, offshore East Java, according to a senior official of the firm.
"The exploration cost in the offshore block is very high. Drilling a well may cost US$35-45 million. Therefore, we are currently in talks with several multinational oil and gas companies to farm into the block,? the company's Director Hendrayanto M. Sakti said during the firm?s Analyst and Investor Meeting in Jakarta, Monday.
He did not unveil the name of the multinational companies.
According to upstream authority SKK Migas, the company has yet to carry out seismic survey and drilling program at the East Kangean block.
General Manager of GSAL Herman Dahlina confirmed that his company to date has only conducted various studies.
According to the GSAL production sharing contract, in addition to carrying out G&G study, the company must carry out a 350 km 2D seismic survey, and to drill two exploration wells during the exploration period.
According to the Oil & Gas Book 2015, published by Petromindo Group, the block was awarded to GSAL in October 2005. In October 2011, GSAL obtained an exploration period extension of 4 years until October 6, 2015 from the then upstream authority BPMIGAS.
Editing by Johannes Simbolon