KRX reaches deal with 2 Indonesian oil and gas firms
Monday, July 2 2012 - 03:01 AM WIB
KRX Energy Pte Ltd (KRX) said that it had executed an Area of Mutual Interest Agreement (AMI Agreement) with two prominent Indonesian groups to jointly evaluate the onshore areas of Java, Kalimantan and Sumatra for the purposes of forming a consortium to ultimately acquire prospective acreage.
The company said in a press statement on Monday that KRX had a 35% participating interest in the AMI Agreement, which stipulated that participating interests will apply to any application except that it may be adjusted by mutual agreement among the parties.
KRX shall have responsibility to operate the technical component of the initial evaluation and provide ongoing technical support work during any joint study process, with all parties contributing to the cost in accordance with their participating interests.
It did not identify the other parties to the agreement, but it said that they are well established and well recognized operators in Indonesia and will provide operational and government liaison services on an as required basis, on behalf of all the AMI Agreement parties.
The AMI Agreement joint venture have submitted three applications for joint study to the upstream authority BPMIGAS.
Previously, it was reported that Lion Energy Limited (LION) announced on June 18, that it had executed an agreement with KRX, paving the way for LION to provide ongoing funding for KRX as it moves forward with acquisition and development of oil and gas interests in Southeast Asia.
The company noted that the Indonesian government through the ministry of energy and mineral resources had issued its ministerial regulation no 05/2012 on January 31 this year to govern the award of cooperation contracts for the exploitation of unconventional resources.
?This has triggered the industry upturn in interest in the unconventional opportunities in Indonesia,? it stated on the press statement.
Editing by Benget Besalicto Tnb.