Harvest gets extension of exploration term in Budong-Budong PSC

By Peni Pedriawan

US-based firm Harvest Natural Resources Inc. has officially secured approval from upstream authority SKK Migas for an extension of the initial six-year exploration term in its Budong-Budong block onshore West Sulawesi.

The initial exploration term of the Budong-Budong PSC was due to expire on January 15, 2013.

?In January 2013, we received written approval from SKK Migas of the four-year extension of the initial six-year exploration term,? the company said in a statement on Wednesday.

Harvest has assumed the operator of the block following an agreement inked last December with previous operator Tately Budong-Budong N.V, pushing up the firm?s participating ownership interest in the Budong-budong PSC to 71.5 percent.

The company said that the consideration for the acquisition is that Harvest will fund 100 percent of the costs of the first exploration well of the four-year extension to the Budong-Budong PSC. ?If the exploration well is not drilled within 18 months of the date of approval from the Government of Indonesia of this transaction, our partner has the right to give notice that the consideration of $3.2 million be paid in cash,? it said.

Editing by Dadan Wijaksana