Korea?s KNOC returns three oil, gas concession areas

Korea National Oil Corp (KNOC) has returned three concession areas to the government on the grounds that they were economically unfeasible for further development.

The three concession areas are Wokam block in onshore/offshore West Papua, North East Madura I and North East Madura II blocks.

"They have spent up to US$120 million, but got nothing. So they returned the concession areas to the government,? the chairman of oil and gas regulatory body BPMIGAS, R. Priyono said in Jakarta on Tuesday.

In addition to the three concession areas, Priyono said that two other concession areas - East Bawean II, offshore East Java owned by Canadian oil, gas firm Husky Energy and Halmahera block in onshore/offshore Maluku and Rembang block in offshore Central Java owned by MCube ? are under the process of being returned to the government, also due to unfeasibility reason.

In October 2009, Husky Energy reported that it had drilled two unsuccessful exploration wells in East Bawean II PSC.

The Transocean Adriatic XI jack-up rig drilled two exploration wells in the third quarter 2009. The wells were both plugged and abandoned without testing, although the Adiyasa-1 well did confirm the existence of noncommercial gas volume, the company said. Another well is called Kukura-1.

Husky holds a 100% interest in the block.(godang)