Exspan to conduct seismic survey in Bengara Block

Oil and gas producer PT Exspan Nusantara said Thursday its parent company PT Medco Energi Internasional Tbk had given a mandate to manage exploration activities in Bengara Block which spans from Nunukan regency to Bulungan regency, offshore East Kalimantan.

"Through seismic, we are able to obtain a clear overall picture of the geological structure of that area, including the location of a reservoir which could contain hydrocarbon," said Exspan's Operations Geoscience Section Head Dedi Sukmara in a statement.

Last year, Medco acquired a 95 percent stake of U.S. based oil company Petromer Bengara Energi for US$ 1.6 million, which owns 100 percent working interest in Bengara block.

According to the statement, the available data for Bengara Block was recorded from around 1972 through 1984, but the quality was poor and thus a new seismic survey is necessary.

?It is hoped that this seismic survey will be completed in December 2003, so that the data can be used to determine the drilling location which will be used in 2004,? said Exspan.

The Bengara Block is an area consisting of land, swamps, and rivers, and therefore the hazard level in this area is very high. Exspan added that the projects in the swamp and river areas would need an extra awareness of safety issues. (robert)