Giken unit obtains extension to operate RI oil fields

By Ruli Setiawan

SGX-listed Giken Sakata (S) Limited announced Wednesday that PT Cepu Sakti Energy (CSE), a subsidiary of the group, has secured a 10-year extension for both the ?Trembul Agreement? and ?Gabus Agreement.?

The extensions will allow PT CSE to operate in its Trembul oil field and Gabus oil field in Indonesia?s Central Java until November 2, 2020 and December 14, 2021 respectively. Both agreements can be further extended for another 5 years.

?We are heartened by the extensions of our Trembul Agreement and Gabus Agreement and thankful to our partner, PT Sarana Patra Jateng, for their confidence in our capabilities. Our data have shown that the wells in Trembul and Gabus oil fields are much deeper than the other wells in our portfolio, providing greater potential for the production of oil,? said Giken Sakata group CEO, Sydney Yeung in a statement.

?With the Extensions, we now have higher visibility on our drilling schedule for these two oil fields and our portfolio as a whole. Going forward, our focus remains on increasing our production while assessing further oil field opportunities as they arise,? Yeung added.

As the group?s oil production in Dandangilo-Wonocolo and Tungkul oil fields in Central Java is expected to grow further, PT CSE is now in the midst of setting up a central oil gathering station for daily collection of oil produced from the two aforementioned oil fields, Giken said.

This strategic move is expected to provide time and cost savings through the enhancement of logistical efficiency in the area. Upon completion, the station will have a capacity of up to 2,000 barrels of oil but the capacity can be further expanded as oil production increases, it added.

Editing by Reiner Simanjuntak