Lundin asking for termination of Baronang and Cakalang
Saturday, November 8 2014 - 04:39 AM WIB
Swedish oil gas firm Lundin Petroleum has submitted a letter asking upstream authority SKK Migas to terminate its contracts on two exploration block offshore Natuna, Baronang PSC and Cakalang PSC, after failing to encounter commercial hydrocarbon there.
?We sent the letter on Oct. 13,? Lundin?s Exploration Manager Batara Simanjuntak told Petromindo.com.
He said the firm returned the two blocks because the 6-year exploration period for the blocks have expired and the company did not apply for exploration term extension.
"It means that our partner Nido Petroleum (Australian firm) will not continue to work in both blocks," he added.
Meanwhile, SKK Migas? Communications and Protocol Division Head Rudianto Rimbono said that the termination request is being evaluated by the agency in coordination with the Ministry of Energy and Mineral Resources.
The firm earlier said the exploration period of Baronang PSC and Cakalang PSC expire on Nov. 13, 2014. The company has drilled two wells in Baronang blocks namely Boni-1 and Balqis-1 but they have been declared dry holes. Lundin has yet to drill any well in Cakalang block, which is located immediately adjacent to Baronang.
Editing by Johannes Simbolon