IEV signs mutual agreement with Pertamina EP
Friday, July 18 2014 - 04:18 PM WIB
SGX-listed firm IEV Holdings Limited announced on Friday it has signed a Mutual Agreement with PT Pertamina EP (PEP) on Oil Lifting Procedures, Cost Recovery Procedure and Accounting Manual for the KSO project of the Pabauran block in West Java.
The Mutual Agreement was signed on July 7, 2014.
The Approved Procedures and Accounting Manual has detailed the commitment from PEP in preparation for the oil handling from the Pabuaran Block upon the start of oil production. IEV has also received the Approval for Expenses for Phase 2 works (AFE Phase 2) from PEP to proceed with the drilling of two additional development wells from the Cilamaya structure, one additional well from the Pabuaran structure, and acquisition and processing of 3D seismic data. The work program under AFE Phase 2 is expected to commence by the first quarter of 2015.
With the Approved Procedures and Accounting Manual, IEV is now ready to sell the oil from the KSO Project, when oil production commences. Meanwhile, preparation work for Phase 1 is ongoing with the tender evaluation of rig services for the drilling of CLS-1 twin well, which is scheduled to be spud by October 2014. The workover of the gas well at the Pabuaran structure in Phase 1 will also be completed in the same program.
IEV has also begun to negotiate land acquisition terms for the additional wells in Phase 2 of the KSO Project.
Editing by Johannes Simbolon