KNOC may quit Papua exploration block

Korea National Oil Corporation (KNOC) may give up its Wokam Block onshore and offshore West Papua after exploration permit expired, a BPMIGAS official said.

BPMIGAS Deputy Chairman Achmad Luthfi said that the company thus far had not submitted plan of development for its discovery.

He, however, said KNOC had yet formally submitted plan to relinquish the block.

The block was awarded by the government in December 1997. Under the PSC contract KNOC had 10 years to explore the block and must return the block to the government should exploration failed.

In January 2006, KNOC spudded a wildcat well, Bumerah-1x, which has been now plugged and abandoned with gas discovery .

KNOC has 80 percent interest in the block. (godang)