Chinese firm to provide drilling rigs for Saka Energi
Tuesday, January 17 2017 - 07:51 AM WIB
Chinese Oil and Gas Services Ltd (COSL) has won a more than US$20 million contract from PT Saka Energi, an upstream subsidiary of IDX-listed gas distribution firm PT PGN Tbk, to supply the required rigs for Saka?s drilling programs at South Selulu, Pangkah, and Wokam II blocks, according to a source.
The source told Petromindo.com on Tuesday that COSL won the supply rig contract during a recent tender held by Saka.
He added that COSL is currently waiting for the approval of the Indonesian upstream oil and gas authority SKK Migas as the contract is worth more than $20 million.
Saka Energi could not be immediately reached for comment.
As has been previously reported by this portal, quoting Saka Energi CEO Tumbur Parlindungan, the company plans to drill the South Sesulu-2 appraisal well in South Sesulu block, offshore East Kalimantan, in February 2017. Saka has so far drilled only one exploration well in the block, SIS-A#1, in December 2014, where it struck gas reserve which is estimated at 500 bcf. The firm plans to drill at least another two wells, and hopes to get a PoD approval in 2017. Saka owns a 100 percent interest in the block.
In December, Tumbur said that Saka planned to carry out drilling of one exploration well in Wokam II block, offshore West Papua, end of 2017. Saka acquired Wokam II block from Murphy Oil Corp. in 2015. Murphy had previously carried out 3D seismic at the block.
Saka has also said it planned to carry out drilling activities at the Pangkah PSC, offshore East Java, in 2017 and 2018. Saka bought out the block from American firm Hess Corp in two transactions worth US$915 million executed in 2013 and 2014.
Editing by Reiner Simanjuntak