Cepu Sakti signs oil field agreements with Sarana Patra Jateng
Friday, September 19 2014 - 02:18 AM WIB
SGX-listed manufacturing firm Giken Sakata (S) Limited said Friday its recently acquired oil and gas subsidiary PT Cepu Sakti Energy (CSE) has entered into two cooperation agreements (Trembul agreement and Gabus agreement) with Indonesia?s PT Sarana Patra Jateng.
The Trembul agreement, dated September 15, grants the right to CSE to manage 24 old oil wells located in the District of Trembul, Blora Regency, Central Java, Giken said in a statement.
Under the Trembul agreement, CSE is responsible for the procurement of equipment, transportation, manpower and working capital in return for the right to acquire a substantial portion of the revenues arising from the oil that is produced. The Trembul agreement is valid for a period of five years from December 15, 2011.
The Gabus agreement, dated September 17, grants the right to CSE to manage 46 old oil wells located in the District of Gabus, Grobogan Regency, Central Java.
Under the Gabus agreement, PT CSE is also res ponsible for the procurement of equipment, transportation, manpower and working capital in return for the right to acquire a substantial portion of the revenues arising from the oil that is produced. The Gabus agreement is similarly valid for a period of five years from December 15, 2011.
Elsewhere, Giken provided update on CSE production figures. ?The board is pleased to announce that since June 2014, the existing Dandangilo-Wonocolo and Tungkul oil fields has now increased its production to approximately 880 barrels of crude oil per day,? said the company, which recently completed the acquisition of a 51 percent stake in Cepu Sakti Energy Pte Ltd, which owns 95 percent of CSE.
CSE holds the exclusive rights to cooperate in conducting operations for extracting oil from two oilfields in Tungkul and Trumbul fields in Blora, Central Java, and the Dandangilo, Wonocolo and Ngrayong fields in Bojonegoro, East Java.
Editing by Reiner Simanjuntak