EWC tries to reinstate upstream assets

ASX-listed energy firm Energy World Corporation Limited (EWC) said it is seeking to reinstate its upstream assets in South Sumatra and South Sulawesi.

The company revealed in an Annual Report released Tuesday it was currently in discussion with upstream oil, gas authority BPMIGAS over the potential to re-operate Biru, Talang Babat and Gajah Technical Assistance Contracts (TAC)s that are located onshore South Sumatra.

The company?s subsidiaries are parties to 20-year TAC contract to operate the TACs but failed to meet minimum expenditure on exploration, which leaded the company to treat the contracts as having expired and as currently having no commercial value.

?We are currently in discussions with BPMigas, the successor to Pertamina, to investigate the potential to reinitiate or retender for these contracts but we have made no decision to do so,? the company said.

EWC is also trying to get hold of its Bone Bay PSC, offshore South Sulawesi.

?Our subsidiaries are also parties to operate the Bone Bay block, under which certain payment obligations have already been met. We are therefore actively pursuing a dialogue with BPMigas to agree a development program for the PSC,? the company said.

Bone PSC was awarded in 2000. In 2006 BPMIGAS said Bone Bay PSC had failed to meet its exploration commitment. (alex)