Gulf Indonesia to spend US$ 14.5 million in S. Sumatra new exploration block

Oil and gas firm Gulf Indonesia Resources is committed to spend US$ 14.5 million for the first three year in newly acquired Sakakemang exploration block onshore South Sumatra, according to a company executive.

Gulf Indonesia?s senior vice president for administrative affairs Supramu Santosa told Petromindo.com in an interview Wednesday that the money would be used to conduct 500 kms seismic and to drill two exploration wells.

?Gulf Indonesia will start seismic study on the block next year, and we hope to be able to conduct exploration drilling the following year,? Supramu said.

Supramu said the Sakakemang block would be operated under joint operating body (JOB) with state oil and gas firm Pertamina. The block is Gulf Indonesia?s Corridor gas block.

?But unlike the standard split of fifty-fifty in normal JOB, Gulf Indonesia gets 70 percent interest in Sakakemang,? he added. (alex)