KrisEnergy: SKK Migas approves transfer of interest in Bala-Balakang PSC

By Romel S. Gurky

SGX-listed KrisEnergy Ltd., an independent upstream oil and gas company, announced Thursday that the Indonesian upstream oil and gas regulator SKK Migas had in August approved the transfer of Neon Energy?s 42 percent working interest in the Bala-Balakang PSC (formerly Tanjung Aru PSC) in the Makassar Strait.

?Following the approval, KrisEnergy holds an 85.0 percent operated working interest in the Tanjung Aru PSC, where there are no outstanding firm well commitments,? KrisEnergy said in a statement.

The Bala-Balakang PSC was signed by Serica Tanjung Aru B.V. on Dec. 9, 2011 through direct offer. KrisEnergy acquired a 43 percent operating interest in the block through the acquisition of Serica?s Indonesian assets in Oct. 2011. KrisEnergy increased its working interest to 85 percent following the withdrawal of Neon Energy from the block in 2014. The transfer of Neon Energy?s interest in the Bala-Balakang PSC to KrisEnergy, however, had not been approved by SKK Migas until August of this year.

Originally named the Tanjung Aru PSC, the government renamed the block to Bala-Balakang in January 2015. The Bala-Balakang PSC is situated offshore in the Makassar Strait, straddling the shallow waters of the Paternoster platform and the deeper waters of the Kutei Basin. Water depths across the block range from 0-1,100 meters. With the completion of a 3D seismic program in 2014, there are no remaining firm commitments on the block.

A source told Petromindo.com in May that KrisEnergy was looking for a partner in developing the Bala-Balakang PSC, ready to offer up to 42 percent shares.

Editing by Reiner Simanjuntak